Is mediation binding before bringing an action against Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Mediation. Before Franchisee (or any of its Owners, guarantors, or affiliates) and Franchisor (or its affiliates) may bring an Action against the other, the parties must first meet to mediate the Act (except as otherwise provided below). Any such mediation shall be non-binding. Mediation shall be (i) conducted by a mediator mutually agreeable to the parties who has franchise law experience, (ii) conducted in accordance with the American Arbitration Association rules for mediation of commercial disputes and (iii) held in the city of Franchisor's then-current principal place of business (currently Elizabethtown, NC). Nevertheless, the parties may mutually agree on a mediator, venue, and/or procedures for mediation. The mediation shall be commenced by the party requesting mediation ("complainant") providing written notice of the request for mediation ("request") to the party with whom mediation is sought ("respondent"). The request shall specify with reasonable particularity the matter or matters on which mediation is sought. A copy of the request shall be given by the complainant simultaneously to Franchisor if Franchisor is not a complainant or respondent. Mediation commenced under this Section 21 shall be concluded within sixty (60) days of the issuance of the request or such longer period as may be agreed upon by the parties in writing. All aspects of the mediation process shall be treated as confidential, shall not be disclosed to others, and shall not be offered or
admissible in any other proceeding or legal action whatever. Complainant and respondent shall each bear its own costs of mediation, and each shall bear one-half the cost of the mediator or mediation service.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, mediation is required but non-binding before a franchisee can take legal action against the franchisor. This means that a franchisee must attempt to resolve disputes through mediation before initiating a lawsuit.
The mediation process involves a mutually agreed-upon mediator with franchise law experience, following the American Arbitration Association rules for commercial disputes. The mediation will take place at Burneys Sweets More's principal place of business, which is currently Elizabethtown, NC, unless both parties agree to a different location. The party requesting mediation must provide written notice to the other party, specifying the issues to be mediated, and a copy must be sent to Burneys Sweets More if they are not directly involved.
The mediation must conclude within 60 days of the initial request, unless both parties agree to extend this period. All aspects of the mediation are confidential and cannot be disclosed or used in any other legal proceedings. Each party bears their own costs, and they split the cost of the mediator or mediation service. Since the mediation is non-binding, either party can pursue further legal action even if mediation is unsuccessful.