Are statements made during mediation with Buona considered confidential?
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 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, all statements made during mediation are considered strictly confidential. Prior to initiating any litigation, both parties (Buona and the franchisee) must first attempt to resolve disputes through non-binding mediation. This mediation will occur in Cook County, Illinois, using a mutually agreed-upon mediator or a service selected by Buona. Before the mediation begins, both parties are required to sign a confidentiality agreement, either the mediator's standard form or one provided by Buona.
Specifically, the FDD states that all statements made during the mediation process are strictly confidential and cannot be disclosed to any third parties, except for the mediator. Documents or data prepared specifically for these negotiations are also confidential and cannot be shared with third parties, except those directly involved in facilitating the mediation. Both parties agree not to copy these documents and must return them at the conclusion of the mediation.
Furthermore, the agreement explicitly states that no statements made or evidence prepared for the mediation can be used for any purpose in subsequent legal proceedings. This provision aims to encourage open and honest communication during mediation, as parties can speak freely without fear of their words being used against them later in court. This confidentiality clause is a standard practice in mediation to foster a more conducive environment for resolving disputes amicably and efficiently.