What is the deadline for resolving a Closet Storage Concepts dispute through mediation before litigation can be initiated?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
If the parties are unable to resolve the claim, controversy or dispute within ninety (90) days after the mediator has been chosen, then, unless such time is extended by written agreement of the parties, either party may institute litigation.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, franchisees must attempt to resolve disputes through mediation for 90 days before initiating litigation. The FDD specifies that if the parties cannot resolve the issue within 90 days after a mediator is chosen, either party can start legal proceedings, unless both parties agree to extend this timeframe in writing.
This mediation requirement applies to any claim, controversy, or dispute arising from the Franchise Agreement, the relationship between Closet Storage Concepts and the franchisee, the validity of the agreement, or any System standard. However, this does not apply to actions brought by Closet Storage Concepts for monies owed, injunctive relief, or disputes involving real property, the Closet Storage Concepts' Marks, or confidential information.
Mediation is to take place within 20 miles of Closet Storage Concepts' headquarters. The costs of mediation, excluding attorney fees, are to be split equally between the franchisee and Closet Storage Concepts. Failure to pay mediation costs constitutes a breach of the Franchise Agreement.