Is mediation binding for disputes related to the Dermani Medspa franchise?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
nt Agreement may not be enforceable. Notwithstanding the foregoing, nothing in this or any related agreement is intended to disclaim the express representations made in | | 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) |
ITEM 18. PUBLIC FIGURES
We do not use any public figures to promote our franchise.
**ITEM 19.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 51–58)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, dispute resolution through mediation is non-binding. Specifically, both the Franchise Agreement and the Area Development Agreement stipulate that before initiating a lawsuit, both parties must first engage in non-binding mediation to resolve the dispute. However, either party retains the right to seek injunctive relief in court for certain matters, irrespective of the mediation process, subject to state law.
This non-binding mediation process means that while Dermani Medspa franchisees are required to attempt to resolve disputes through mediation, the outcome of the mediation is not legally binding. If either party is unsatisfied with the results of the mediation, they are free to pursue further legal action. This provides franchisees with the flexibility to seek legal remedies if mediation fails to produce a satisfactory resolution.
It is common in the franchise industry for mediation to be a required step before arbitration or litigation. However, the binding nature of mediation can vary. The Dermani Medspa franchise agreements give franchisees the option to litigate if mediation does not resolve the issue. Franchisees should be aware of this aspect of the dispute resolution process and consider its implications when evaluating the franchise opportunity.