Can information disclosed during Ella Cafe mediation be used in subsequent litigation?

According to Ella Cafe's 2024 Franchise Disclosure Document, statements made during mediation are generally inadmissible in subsequent legal proceedings. Specifically, the document states that any information disclosed by either party in mediation may only be used for those purposes and cannot be used in any following litigation. This encourages open and honest communication during the mediation process, as parties can speak freely without fear of their words being used against them later in court.

However, there are exceptions to this rule. The agreement to mediate does not apply to disputes relating to past due amounts owed to Ella Cafe, the Marks, Copyrighted Works, or Ella Cafe's Confidential Information. In these specific cases, the parties are not obligated to mediate, and any information could potentially be used in litigation. Additionally, Ella Cafe and the developer retain the right to seek temporary restraining orders and preliminary injunctive relief in court, regardless of the mediation agreement.

This provision is fairly standard in franchise agreements, as it aims to promote alternative dispute resolution while protecting the franchisor's key assets and rights. Prospective Ella Cafe franchisees should understand these limitations and exceptions to the mediation process. It's also important to note that mediation must be conducted in person, and failure to appear for mediation cannot be excused due to illness, COVID, inconvenience, weather, or any other reason.