Under what condition can the Casiola Franchisor elect to bypass the non-binding mediation requirement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding the preceding paragraph, Franchisor and Franchisee agree this Sub-Article 18.G.(1) and, thereby, the prerequisite requirement of non-binding mediation, shall not, at Franchisor's election, apply to: (a) any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement; and/or (b) claims by either Franchisor or Franchisee under this Agreement that relates to either Franchisor's or Franchisee's failure to pay fees or other monetary obligations due under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the franchisor can bypass the non-binding mediation requirement under specific conditions. Casiola can elect to skip mediation for claims related to a franchisee's breach of the agreement that may entitle Casiola to injunctive relief. This includes, but is not limited to, violations of Article 6 of the agreement.
Additionally, Casiola can bypass mediation for claims related to the failure of either the franchisor or the franchisee to meet their monetary obligations under the agreement. This means that if a dispute arises over unpaid fees or other financial issues, Casiola can choose to proceed directly to arbitration or other legal action without first attempting mediation.
This election is solely at Casiola's discretion, meaning the franchisee does not have the same option to bypass mediation. This could potentially put franchisees at a disadvantage, as they may be required to engage in mediation while Casiola can choose to proceed directly to arbitration, which may be a more costly and time-consuming process. Franchisees should be aware of this provision and consider its potential implications before entering into a franchise agreement with Casiola.