factual

Is the mediation for Deck Medic franchise disputes binding?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

q. Non-competition covenants during the term of the franchise 6 No involvement in any competitive business and must comply with confidentiality, non-disclosure and non solicitation covenants.
r. Non-competition covenants after the franchise is terminated or expires 6, 17 No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Operating Territory; a 25 mile radius of your Operating Territory; the Operating Territory of any other Deck Medic Business; and you must comply with confidentiality, non-disclosure and non-solicitation covenants.
s. Modification of the agreement 18.L. Requires writing signed by you and us, except for unilateral
changes that we may make to the Manuals or our unilateral
reduction of the scope of a restrictive covenant that we may
make in our discretion.
t. Integration/merger clauses 18.M. Only the terms of the Franchise Agreement and schedules to
the Franchise Agreement and the respective signed exhibits
to the Franchise Agreement are binding, subject to state law.
Nothing in any agreement is intended to disclaim the
express representations made in the Franchise Disclosure
Document, its exhibits and amendments.
u. Dispute resolution by arbitration or mediation 18.G. Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Will County, Illinois and, if mediation is unsuccessful, then to binding arbitration in Will County, Illinois. This provision is subject to applicable state law.
v. Choice of forum 18.G. All mediation, arbitration and, if applicable, litigation
proceedings must be conducted in, or closest to, State court
of general jurisdiction that is within or closest to Will
County,
Illinois
or, if appropriate, the United States District
Court nearest to our corporate headquarters at the time such
action is filed. This provision is subject to applicable state
law.
w. Choice of law 18.F. Illinois
law will govern. However, this provision is subject
to state law and as otherwise disclosed in Exhibit I
to this
Disclosure Document.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–39)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, dispute resolution involves both mediation and arbitration. Except for claims seeking injunctive relief, all disputes must first go through non-binding mediation in Will County, Illinois. If the mediation is unsuccessful, the dispute then proceeds to binding arbitration, also in Will County, Illinois. This process is subject to applicable state law.

For a prospective Deck Medic franchisee, this means that before pursuing legal action, they must attempt to resolve disputes with Deck Medic through mediation. However, the outcome of the mediation is not binding, meaning either party can reject the mediator's suggestions. If mediation fails, the dispute will be settled through binding arbitration, where the arbitrator's decision is final and legally enforceable.

The FDD also specifies that all mediation, arbitration, and litigation proceedings must occur in or closest to a state court of general jurisdiction within or closest to Will County, Illinois, or the nearest United States District Court to Deck Medic's corporate headquarters. Illinois law governs the Franchise Agreement, subject to state law and disclosures in Exhibit I of the Disclosure Document.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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