Is mediation required before arbitration for disputes with Counselor Realty?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Franchise or Other Agreement | Summary contractors of Counselor or any of Counselor's franchisees | |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | 7.2 | No solicitation of agents, employees or independent contractors of Counselor or any of Counselor's franchisees for 24- months post-termination |
| s. | Modification of the agreement | Section 13.2 | No modifications generally but Franchise Policy Guidelines and licensed Marks subject to change by Counselor |
| t. | Integration/merger clause | Section 13.1 | Only the terms of the Franchise Agreement are binding on Counselor |
| u. | Dispute resolution by arbitration or mediation | Section 10.1 | Most disputes are resolved by individual binding arbitration conducted in Minneapolis, Minnesota |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 25–29)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, most disputes are resolved through individual binding arbitration in Minneapolis, Minnesota, as detailed in Section 10.1 of the franchise agreement. Item 17 summarizes dispute resolution, stating that arbitration or mediation will be used. The document does not explicitly state that mediation is required before arbitration.
While the FDD indicates that disputes are resolved through arbitration or mediation, it does not specify the order or process for these methods. This means that a franchisee may or may not be required to participate in mediation before proceeding to arbitration, depending on the specific circumstances and the discretion of Counselor Realty.
Prospective franchisees should clarify with Counselor Realty whether mediation is a mandatory step before arbitration. Understanding the dispute resolution process is crucial, as it can significantly impact the time and cost associated with resolving conflicts. It is advisable to seek legal counsel to fully understand the implications of the dispute resolution terms outlined in the franchise agreement.