Where will mediation take place for disputes related to a Buona franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Do you understand all disputes or claims you may have arising out of or relating to the Franchise Agreement must be arbitrated in Illinois, if not resolved informally or by mediation?
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
Based on the 2025 Buona Franchise Disclosure Document, if informal resolution fails, disputes must go to mediation before arbitration. While the FDD mentions that arbitration will occur in Illinois, it does not specify the location for mediation.
This means that if a franchisee has a dispute with Buona, they will be required to attempt mediation before proceeding to arbitration. Since the location for mediation is not specified in the FDD, it is important for a prospective franchisee to clarify where mediation would take place, as this could involve travel and associated costs.
It would be prudent for a potential Buona franchisee to discuss the mediation process with the franchisor. Specifically, they should ask where mediations are typically held, who bears the costs of mediation, and what the process entails. Understanding these details upfront can help a franchisee prepare for potential disputes and associated expenses.