Are Devon Creek Franchisee and Franchisor required to keep mediation and arbitration proceedings confidential?

According to Devon Creek's 2024 Franchise Disclosure Document, both the franchisor and franchisee are required to maintain confidentiality regarding mediation and arbitration proceedings. Specifically, all aspects of any mediation or arbitration proceeding must be kept in confidence. This means that neither party can disclose any information about the proceeding to any third party. The only exception to this rule is that disclosure can be made to legal counsel, who are also required to maintain the confidentiality of the information.

This confidentiality clause is designed to protect both Devon Creek and its franchisees from potential negative publicity or competitive disadvantage that could arise from the disclosure of sensitive information during dispute resolution. By keeping these proceedings confidential, the parties can focus on resolving the issue at hand without fear of external interference or judgment. This promotes a more efficient and amicable resolution process.

For a prospective Devon Creek franchisee, this confidentiality requirement means that they must be discreet about any disputes that go to mediation or arbitration. They cannot discuss the details of the case with anyone other than their legal counsel, ensuring that the proceedings remain private. Failure to comply with this provision could potentially lead to legal consequences or damage the relationship with Devon Creek.