What obligations does CB Franchising have during the mediation process with a Chocolate Bash franchisee?

According to Chocolate Bash's 2024 Franchise Disclosure Document, both Chocolate Bash and the franchisee are obligated to comply with the terms of the Franchise Agreement and fulfill their respective duties during any mediation or litigation, unless the agreement has been terminated. This means that regardless of any ongoing dispute, both parties must continue to operate as if the agreement is fully in effect, adhering to all standards and requirements outlined within it.

This requirement ensures business continuity and prevents either party from unilaterally suspending their obligations simply because a dispute has arisen. For a Chocolate Bash franchisee, this means continuing to operate the franchise in accordance with Chocolate Bash's System Standards, paying royalties and fees, and upholding all other responsibilities detailed in the agreement.

For Chocolate Bash, this means providing ongoing support and resources as stipulated in the agreement, refraining from actions that would undermine the franchisee's business, and otherwise adhering to their contractual obligations. This clause aims to maintain a stable business relationship while the dispute resolution process unfolds.

The location of the mediation will be the city and state of Chocolate Bash's headquarters. 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.