factual

If mediation fails, what further action do Chicken Guy and the Developer agree to?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

ses, agreements, arrangements, or undertakings, oral or written, between the parties relating to the matters covered by this Agreement other than those set forth in this Agreement, in the attachments to this Agreement and in Chicken Guy's Franchise Disclosure Document. Nothing in this Agreement or any related agreement is intended to disclaim the representations Chicken Guy made in Chicken Guy's Franchise Disclosure Document. No obligations or duties that contradict or are inconsistent with the express terms of this Agreement may be implied into this Agreement. Except as expressly set forth herein, no amendment, change or variance from this Agreement shall be binding on either party unless mutually agreed to by the parties and executed in writing.

21. SEVERABILITY AND CONSTRUCTION

  • A. Severability. Each article, paragraph, subparagraph, term and condition of this Agreement, and any portions thereof, will be considered severable. If, for any reason, any portion of this Agreement is determined to be invalid, contrary to, or in conflict with, any applicable present or future law, rule or regulation in a final, unappealable ruling issued by any court, agency or tribunal with valid jurisdiction in a proceeding to which Chicken Guy is a party, that ruling will not impair the operation of, or have any other effect upon, any other portions of this Agreement; all of which will remain binding on the parties and continue to be given full force and effect.
  • B. No Third Party Beneficiaries. Except as otherwise provided in Section 16, nothing in this Agreement is intended, nor shall be deemed, to confer upon any person or legal entity other than Developer and Chicken Guy and its affiliates and such of their heirs, successors and assigns, any rights or remedies under or by reason of this Agreement.
  • C. Modification to Scope of Covenants by Law. Developer expressly agrees to be bound by any promise or covenant imposing the maximum duty permitted by law that is subsumed within the terms of any provision of this Agreement, as though it were separately articulated in and made a part of this Agreement, that may result from striking from any of the provisions of this Agreement any portion or portions which a court may hold to be unreasonable and unenforceable in a final decision to which Chicken Guy is a party, or from reducing the scope of any promise or covenant to the extent required to comply with such a court order.
  • D. Interpretation. No provision of this Agreement shall be interpreted in favor of, or against, any party because of the party that drafted this Agreement.

22. DISPUTES

  • 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 Developer 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 22.B.
  • B. Arbitration. Subject to Section 22.A., Chicken Guy and Developer agree that all controversies, disputes, or claims between the parties and their respective affiliates, owners, shareholders, officers, directors, agents, and/or employees arising out of or related to: (1) this Agreement; (2) the relationship between the parties; (3) the scope and validity of this Agreement or any provision of this Agreement (including the validity and scope of the arbitration obligations under this Section 22.B., which the parties acknowledge is to be determined by an arbitrator and not a court); or (4) any aspect of the System or any System standard must be submitted for binding arbitration, on demand of either party, to the AAA and in accordance with its then-current rules for commercial arbitration. The arbitration proceedings will be conducted by a single arbitrator. The arbitration will take place in the city where Chicken Guy's principal offices are located at the time the demand for arbitration is filed. The arbitrator will have no authority to select a different hearing locale other than as described in the prior sentence. All matters

relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.) and not by any state arbitration law.

Source: Item 23 — RECEIPTS (FDD pages 50–286)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, if mediation is unsuccessful in resolving a dispute, both Chicken Guy and the Developer agree to submit the dispute to binding arbitration. This arbitration will be conducted through the American Arbitration Association (AAA) following its commercial arbitration rules. The proceedings will involve a single arbitrator, and the location for arbitration will be the city where Chicken Guy's principal offices are located when the demand for arbitration is filed.

The arbitrator is authorized to award relief deemed proper, including monetary damages with interest, specific performance, injunctive relief, and reasonable attorney's fees and costs. However, the arbitrator cannot modify the terms of the Franchise Agreement or award punitive damages. Both Chicken Guy and the Developer waive any right to claim punitive damages against each other, limiting recovery to actual damages sustained. The arbitrator's decision is conclusive and binding, and judgment upon the award may be entered in any court of competent jurisdiction.

Furthermore, the arbitration will be conducted on an individual basis, not as a class action, and cannot be consolidated with other arbitration proceedings involving Chicken Guy and another party. Both parties must submit any compulsory counterclaims within the same proceeding, or those claims will be barred. The agreement emphasizes that the Federal Arbitration Act governs all matters relating to arbitration, superseding any state arbitration laws. This detailed arbitration process ensures that disputes are resolved efficiently and fairly, with clear limitations on the types of damages that can be awarded and a focus on individual resolution rather than class actions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.