What is the waiting period after selecting a mediator before litigation can commence with Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, before initiating litigation, both parties must first attempt to resolve any disputes through non-binding mediation. This mediation will occur in Cook County, Illinois, using a mutually agreed-upon mediator or one selected by Buona. Prior to the mediation, both parties must sign a confidentiality agreement.
Following the selection of a mediator, there is a waiting period before litigation can commence. Specifically, no litigation can begin until the earliest of three conditions is met: thirty days have passed since the selection of the mediator; both parties mutually agree that the mediation has failed; or the notified party does not respond to the mediation request within thirty days of receiving notice.
This mandatory mediation process is designed to encourage dispute resolution outside of court, potentially saving both Buona and its franchisees time and money. However, Buona is not obligated to mediate claims regarding specific performance or injunctive relief, or in circumstances where the franchisee has abandoned the business or lost possession of the premises. Franchisees should be aware of these conditions and exceptions, as they could impact the dispute resolution process.