Is there a confidentiality agreement required before participating in mediation with Chicken Guy?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if a dispute arises related to the franchise agreement, a confidentiality agreement is required before participating in mediation. Specifically, before mediation can occur, both Chicken Guy and the developer (franchisee) must sign a confidentiality agreement. This ensures that any sensitive information shared during the mediation process remains protected.
The mediation process itself is non-binding and is conducted by the American Arbitration Association (AAA) following its commercial mediation rules. The location for the mediation is the city where Chicken Guy's principal offices are located when the mediation demand is filed.
This requirement is fairly standard in franchising to protect trade secrets and other confidential business information. If mediation fails to resolve the dispute, the parties must then submit to binding arbitration.