Where will mediation take place if required for a dispute related to the Buona franchise agreement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1 Mandatory Mediation.Except as otherwise specifically provided herein, prior to the initiation of litigation by either party pursuant to this Agreement, the parties must make a good faith effort to resolve any controversies between them by non-binding mediation either through a mutually acceptable mediator or through an established mediation service selected by Franchisor (in either case, "Mediator"). Mediation shall take place in the Cook County, Illinois. Prior to mediation, each party involved in mediation shall sign the standard confidentiality agreement reasonably required by Mediator or a confidentiality agreement reasonably required by Franchisor if the Mediator does not have a standard confidentiality agreement. No litigation proceeding may be commenced until the earlier of thirty (30) days from the selection of the Mediator, or the mutual agreement by both parties that mediation has been unsuccessful, or if the notified party fails to respond to the requesting party within thirty (30) days of the delivery of notice requesting mediation. The parties will share equally all fees and expenses of the mediator, and each part shall bear its own costs otherwise. Each party hereby agrees that all statements made in the course of mediation shall be strictly confidential, and shall not be disclosed to or shared with any third parties, other than the mediator. Each party also agrees that any documents or data specifically prepared for use in good faith negotiations and/or mediation shall not be disclosed to or shared with any third party except those parties whose presence is necessary to facilitate the mediation process. The parties agree not to make copies of any such documents, and to return them to the other party upon the conclusion of the mediation. Each party agrees and acknowledges that no statements made in, or evidence specifically prepared for mediation shall be admissible for any purpose in any subsequent proceedings. Notwithstanding the foregoing,
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, mediation will take place in Cook County, Illinois. Prior to initiating any litigation, both parties involved in a dispute must first attempt to resolve the issue through non-binding mediation. This can be done using a mutually agreed-upon mediator or through a mediation service selected by Buona.
Before the mediation begins, both parties are required to sign a standard confidentiality agreement, either provided by the mediator or by Buona if the mediator does not have one. Litigation cannot start until at least 30 days have passed since the selection of the mediator, or if both parties agree that the mediation has been unsuccessful. Additionally, litigation is prohibited if the notified party does not respond to the mediation request within 30 days of receiving the notice.
The costs associated with the mediation, such as the mediator's fees and expenses, will be shared equally between the parties. However, each party is responsible for their own additional costs. All statements made during the mediation are to be kept strictly confidential and not shared with third parties, and any documents prepared specifically for the mediation are also subject to these confidentiality rules. These documents should be returned to the other party once the mediation concludes. Furthermore, any statements made or evidence prepared for the mediation cannot be used in any subsequent legal proceedings.
This mandatory mediation clause is a fairly standard practice in franchising, intended to encourage parties to resolve disputes amicably and efficiently before resorting to costly and time-consuming litigation. By specifying Cook County, Illinois, as the location for mediation, Buona ensures a consistent and predictable venue for dispute resolution, which can be beneficial for both the franchisor and the franchisee.