Does the agreement to mediate apply to all controversies, disputes, or claims for Ella Cafe?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Notwithstanding the foregoing provisions of this Section 17.2., the parties' agreement to mediate will not apply to controversies, disputes, or claims relating to or based on
past due amounts owed to Franchisor pursuant to this Agreement, the Marks, Copyrighted Works, or Franchisor's Confidential Information. Moreover, regardless of this mediation agreement, Franchisor and Franchisee each have the right in a proper case to seek temporary restraining orders and temporary or preliminary injunctive relief in any court of competent jurisdiction.
- (e) The parties acknowledge that any information disclosed by either party in mediation may only be used for those purposes and may not be used in any following litigation.
Mediation must be conducted in person, and no telephonic or electronic appearance by any of the parties or their counsel is permitted except for the purposes of scheduling mediation or discussion non-material mediation-related matters.
(f) Neither illness, Covid, inconvenience, weather, or any other reason shall serve to excuse your personal appearance for mediation.
**17.3.
Litigation**.
To the extent that litigation is permitted in accordance with the above provisions, or in the event that any claim or controversy is not finally resolved through mediation, then the following provisions will apply:
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the agreement to mediate does not apply to all controversies, disputes, or claims. Specifically, the mediation agreement does not apply to disputes or claims relating to past due amounts owed to Ella Cafe, or those based on the Marks, Copyrighted Works, or Ella Cafe's Confidential Information.
However, Ella Cafe and the franchisee each retain the right to seek temporary restraining orders and temporary or preliminary injunctive relief in any court of competent jurisdiction, regardless of the mediation agreement. If the parties cannot resolve a dispute through mediation within 90 days after the mediator is chosen, either party may initiate legal proceedings, unless the parties agree to extend this period in writing.
Statements made during mediation are inadmissible in any subsequent legal proceeding. Mediation must be conducted in person, and telephonic or electronic appearances are not permitted, except for scheduling or discussing non-material mediation-related matters. Illness, COVID, inconvenience, weather, or any other reason will not excuse personal appearance for mediation.