Does Corporate Cleaning Group require mediation for all disputes?
Corporate_Cleaning_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.2 Mediation. At Franchisor's option, any claim, controversy or dispute that is not resolved pursuant to Section 20.1 hereof shall be submitted to non-binding mediation. Franchisee shall provide Franchisor with written notice of Franchisee's intent to pursue any unresolved claim, controversy or dispute, specifying in sufficient detail the nature thereof, prior to commencing any legal action. Franchisor shall have up to thirty (30) days following receipt of Franchisee's notice to exercise Franchisor's option to submit such claim, controversy or dispute to mediation. Mediation shall be conducted through a mediator or mediators in accordance with the American Arbitration Association Commercial Mediation Rules. Such mediation shall take place in the then-current location of Franchisor's corporate headquarters. The costs and expenses of mediation, including compensation and expenses of the mediator (and except for the attorneys' fees incurred by either party), shall be borne by the parties equally. Franchisor may specifically enforce Franchisor's rights to mediation, as set forth herein.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
According to the 2025 Corporate Cleaning Group FDD, franchisees are not necessarily required to participate in mediation for all disputes. The FDD states that Corporate Cleaning Group has the option to require mediation.
Specifically, before a franchisee can initiate any legal action against Corporate Cleaning Group, the franchisee must first utilize Corporate Cleaning Group's internal dispute resolution process. After exhausting this internal process, if a resolution is not reached, Corporate Cleaning Group has the option to require non-binding mediation.
If Corporate Cleaning Group chooses mediation, it will be conducted according to the American Arbitration Association Commercial Mediation Rules and will take place at Corporate Cleaning Group's headquarters. The costs of mediation, excluding attorney's fees, will be split equally between the franchisee and Corporate Cleaning Group. Corporate Cleaning Group retains the right to enforce mediation.