What happens to documents brought into existence specifically for the purpose of the Chatime mediation process?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties to the mediation agree that: everything that occurs before the mediator will be in confidence and in closed session; all discussions will be without prejudice; and no documents brought into existence specifically for the purpose of the mediation process will be called into evidence in any subsequent litigation by either of the parties.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, any documents created specifically for the mediation process are confidential and cannot be used as evidence in later legal proceedings. The agreement specifies that all discussions during mediation are without prejudice and occur in a closed session, ensuring a candid environment for dispute resolution. This encourages open communication without fear of future repercussions.
This provision aims to promote honest and productive mediation sessions. By preventing the use of mediation-related documents in subsequent litigation, Chatime seeks to foster trust and cooperation between the parties during the mediation process. This encourages both parties to be more forthcoming and explore potential resolutions without the concern that their statements or documents could be used against them later in court.
This is a fairly standard clause in franchise agreements, as it aligns with the principles of mediation as a non-binding dispute resolution method. The goal is to facilitate settlement discussions without the pressure of creating a legal record. Franchisees should understand that while mediation is confidential, it is crucial to approach it with a clear understanding of their position and with all relevant information to achieve a favorable outcome.