If a dispute is not resolved through a meeting, where must the parties submit their dispute to mediation for Carbones Pizzeria?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. If the dispute is not resolved through the foregoing meeting, the parties agree to submit their dispute to mediation in Hennepin County, Minnesota, with a mutually agreed upon mediator.
The party requesting resolution of an issue will submit the names of three qualified mediators to the other party who shall have the right to select one mediator to mediate.
The procedure developed by the mediator shall control the mediation proceeding.
It is acknowledged that the parties intend to expedite the resolution of any such dispute through the mediation process.
Each party shall pay one-half of the costs of the mediation and their own attorney fees and costs.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, if a dispute cannot be resolved through an initial meeting between the franchisor and franchisee, the parties must submit to mediation in Hennepin County, Minnesota. The parties are expected to choose a mutually agreed upon mediator. If the parties cannot agree on a mediator, the party requesting resolution will submit three names of qualified mediators to the other party, who then has the right to select one of the mediators to conduct the mediation.
The cost of the mediation will be split, with each party responsible for one-half of the expenses. Additionally, each party will bear their own attorney fees and costs associated with the mediation. The procedure developed by the mediator will govern the mediation proceeding, and the parties are expected to expedite the resolution of any dispute through this process.
This clause mandates mediation before arbitration, a common step in franchise agreements to encourage quicker and less expensive resolutions. However, franchisees should be aware that mediation in Hennepin County, Minnesota, could involve travel expenses if they are not local. Franchisees should also consider the potential costs of mediation, including their share of the mediator's fees and their own legal fees, when evaluating the franchise opportunity.