In the event of a dispute with Dermani Medspa, must the parties first submit to non-binding mediation?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| the Franchise Disclosure Document, its exhibits and amendments. | ||
| u. Dispute resolution by arbitration or mediation | Section 12.5 | Before bringing an action in court, the parties must first submit the dispute to non–binding mediation (except that either party can go to court to seek injunctive relief for certain matters). (subject to state law) |
| v. Choice of forum | Section 12.6 | Any action you bring against us must be in the state and judicial district in which we have our principal place of business. Any action we bring against you may be brought in the state and judicial district in which we have our principal place of business. (subject to state law) |
| w. Choice of law | Section 12.7 | Florida without regard to its conflict of laws or rules (except to the extent federal law applies). (subject to state law) |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 58–61)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, Dermani Medspa franchisees are required to participate in non-binding mediation before initiating a lawsuit against the franchisor. Specifically, before bringing an action in court, the franchisee and Dermani Medspa must first submit the dispute to non–binding mediation. However, there is an exception: either party can go to court to seek injunctive relief for certain matters. This requirement is subject to state law.
This mediation requirement means that a Dermani Medspa franchisee must attempt to resolve disputes through a neutral mediator before pursuing legal action. Mediation can be a less expensive and time-consuming alternative to litigation. However, because the mediation is non-binding, neither party is obligated to accept the mediator's proposed resolution. If mediation fails, the franchisee is still able to pursue a lawsuit.
The FDD also specifies that any action brought against Dermani Medspa must be in the state and judicial district in which Dermani Medspa has its principal place of business. Similarly, any action Dermani Medspa brings against a franchisee may be brought in the state and judicial district in which Dermani Medspa has its principal place of business. The choice of law is Florida, without regard to its conflict of laws or rules, except to the extent federal law applies. These stipulations regarding dispute resolution, choice of forum, and choice of law are all subject to state law.