What rules govern the mediation process with Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Mediation; Arbitration.
(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, before a franchisee or Burneys Sweets More initiates a legal action against the other, they must first attempt to resolve the issue through non-binding mediation. The mediation aims to facilitate a resolution before escalating to more formal and costly legal proceedings.
The mediation process must adhere to specific guidelines. It must be conducted by a mutually agreed-upon mediator who possesses experience in franchise law. The mediation should follow the American Arbitration Association rules for mediating commercial disputes. The venue for the mediation is the city where Burneys Sweets More's principal place of business is located, which is currently Elizabethtown, NC, although the parties can mutually agree to a different location.
The process begins with the party requesting mediation providing written notice to the other party, clearly specifying the issues to be mediated. A copy of this request must also be sent to Burneys Sweets More if they are not directly involved as a 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 treated as confidential and cannot be disclosed or used in any other legal proceedings. Each party is responsible for their own costs associated with the mediation, and they must equally share the costs of the mediator or mediation service.
This mediation clause is fairly standard in franchise agreements. It aims to provide a structured, less adversarial way to resolve disputes, potentially saving both parties time and money compared to litigation or arbitration. Franchisees should understand these procedures and be prepared to engage in mediation in good faith should a dispute arise with Burneys Sweets More.