factual

Where will the mediation take place in a dispute involving Chicken Guy?

Chicken_Guy Franchise · 2025 FDD

Answer 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 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.

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

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, mediation will occur in the city where Chicken Guy's principal offices are located when the demand for mediation is filed. This means that if a dispute arises between a franchisee and Chicken Guy, the franchisee may be required to travel to the city where Chicken Guy's main offices are to participate in mediation.

This requirement could create a financial burden for franchisees, especially if they are located far from Chicken Guy's headquarters. Travel expenses, accommodation, and lost time can add up, potentially making it more challenging for the franchisee to effectively participate in the mediation process. Franchisees should factor in these potential costs when evaluating the franchise opportunity.

It is common in franchise agreements to specify a location for dispute resolution, often favoring the franchisor's principal place of business. This clause aims to streamline the legal process for Chicken Guy, but franchisees should be aware of the potential implications and consider negotiating for a more neutral or convenient location during the franchise agreement negotiation, if possible.

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.