Besides injunctive relief, what method should be used to settle disputes with Chicken Guy before arbitration?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Mediation. Except as provided with respect to injunctive relief as set forth in this Agreement, in the event of any dispute arising from or in connection with this Agreement or the breach thereof or the relationship of the parties, the parties shall use their best efforts to settle the dispute by consulting and negotiating with each other in good faith to attempt to reach a solution satisfactory to both parties. If these methods fail, Chicken Guy and Franchisee agree to submit any claim, controversy, or dispute arising out of this Agreement or the relationship of the parties to non-binding mediation conducted by the American Arbitration Association (the "AAA") and in accordance with its then-current rules for
commercial mediation. Once either party has submitted a dispute to mediation, the obligation to attend will be binding on both parties. Both parties must sign a confidentiality agreement before participating in any mediation proceeding. The mediation will take place in the city where Chicken Guy's principal offices are located at the time the demand for mediation is filed. If a dispute cannot be resolved through mediation, the parties agree to submit the dispute to arbitration, subject to the terms and conditions of Section 31.B.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, in the event of a dispute, both parties are expected to first make their best effort to settle the matter through good-faith consultation and negotiation. If these initial efforts are unsuccessful, Chicken Guy and the franchisee must then submit the dispute to non-binding mediation. This mediation is to be conducted by the American Arbitration Association (AAA) following its prevailing rules for commercial mediation.
Both Chicken Guy and the franchisee are obligated to participate in mediation once either party initiates it. Prior to engaging in the mediation process, both parties are required to sign a confidentiality agreement. The location for the mediation will be in the city where Chicken Guy's main office is located when the mediation request is submitted.
If mediation does not resolve the dispute, the parties are then required to proceed to arbitration, as detailed in Section 31.B of the franchise agreement. Injunctive relief is an exception to this process, as Chicken Guy can seek this form of relief from a court without first going through mediation or arbitration, although they must contemporaneously submit the disputes for non-binding mediation and then for arbitration on the merits if such disputes cannot be resolved through mediation.