What is the required action of the notified party upon receiving notice requesting mediation with Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
24.1 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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, prior to initiating litigation, both parties must first attempt to resolve any disputes through non-binding mediation. If one party sends a notice requesting mediation, the notified party must respond within thirty days of receiving the notice. Failure to respond within this timeframe allows the requesting party to proceed with litigation.
This mandatory mediation clause means that a Buona franchisee cannot immediately sue Buona without first attempting to resolve the issue through mediation. This process is designed to save both parties time and money by avoiding costly litigation. The mediation will take place in Cook County, Illinois.
If mediation is unsuccessful, or if the notified party does not respond within the specified 30-day period, either party is then free to initiate litigation. This clause encourages both Buona and its franchisees to engage in good-faith efforts to resolve disputes amicably before resorting to legal action.