Does the Chocolate Bash franchise agreement require mediation for all disputes?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Mediation.**
- (a) Disputes Subject to Mediation. Except as expressly provided in subsection (c), any controversy or claim between the parties (including any controversy or claim arising out of or relating to this Agreement or its formation) shall first be submitted to mediation in accordance with its Commercial Mediation Rules.
- (b) Location. The place of mediation shall be the city and state where CB Franchising's headquarters are located.
- (c) Confidentiality. All documents, information, and results pertaining to any arbitration or lawsuit will be confidential, except as required by law or as required for CB Franchising to comply with laws and regulations applicable to the sale of franchises.
- (d) Performance During Arbitration or Litigation. Unless this Agreement has been terminated, CB Franchising and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the mediation or litigation process.
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives any right to punitive or other monetary damages not measured by the prevailing party's actual damages, except damages expressly authorized by federal statute and damages expressly authorized by this Agreement.
- 17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
- 17.4 Time Limitation. Any legal action arising from or related to this Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the franchise agreement mandates mediation as the initial step for resolving disputes. The mediation will occur in the city and state where Chocolate Bash's headquarters is located. All documents, information, and results pertaining to any arbitration or lawsuit will be confidential, unless disclosure is required by law to comply with regulations applicable to the sale of franchises.
During mediation or litigation, both Chocolate Bash and the franchisee must continue to adhere to the terms of the franchise agreement and fulfill their respective obligations, unless the agreement has been terminated. This ensures that the business operations continue without disruption while the dispute resolution process is underway.
Any claims arising from the franchise agreement will be resolved on an individual basis, and the parties waive any right to participate in class actions. Furthermore, any legal action related to the agreement must be initiated within two years from the date the party discovers the event that forms the basis of the legal action. However, this time limitation does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or the Chocolate Bash Marks. For any legal proceeding other than mediation, the venue will be the United States District Court where Chocolate Bash's headquarters is located, or if there is no federal jurisdiction, the court of record in the state and county where Chocolate Bash's headquarters is located.