What is the role of mediation in resolving disputes with Burneys Sweets More before arbitration?
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 a mandatory first step before either a franchisee or Burneys Sweets More can initiate a formal action like arbitration. This process is designed to facilitate a non-binding resolution to disputes. Before starting an action against Burneys Sweets More, the franchisee must first participate in mediation.
The mediation process involves a mediator who is mutually agreed upon by both parties and possesses experience in franchise law. The mediation will follow the American Arbitration Association rules for commercial disputes and will take place in Elizabethtown, NC, which is Burneys Sweets More's principal place of business, unless both parties agree to a different location. The party initiating the mediation must provide written notice to the other party, detailing the issues to be mediated, and simultaneously provide a copy to Burneys Sweets More if they are not the complainant or respondent.
The mediation must conclude within 60 days of the initial request, unless both parties agree to extend this period in writing. All aspects of the mediation are to be kept confidential and are inadmissible in any subsequent legal proceedings. Each party is responsible for their own costs associated with the mediation, and they will equally share the costs of the mediator or mediation service. This structured mediation process aims to resolve conflicts efficiently and confidentially before escalating to arbitration or other legal actions, potentially saving both parties time and expenses.