On what page of the Extreme Art Studio Franchise Agreement can I find information about mediation?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
All arbitration proceedings shall take place in the county and state of our principal business address, which is currently in Eden Prairie, Minnesota.
- 17.6.4 The arbitration award shall be binding upon the parties, and may be entered and enforced in any court of competent jurisdiction.
Any arbitration or mediation proceeding shall be limited to controversies between us and you, and shall not be expanded to include any other Extreme Art Studio franchisee as a party, or include the adjudication of class action claims.
Except as required by applicable law, including the required disclosure in our franchise disclosure document, the entire arbitration proceedings and related documents are confidential.
17.7 INJUNCTIVE RELIEF AND PROVISIONAL REMEDIES.
17.7.1 Notwithstanding the provisions of Sections 17.5 and 17.6 of this Franchise Agreement, we have the right to seek from an appropriate court any provisional remedies, including declaratory relief, specific performance, temporary restraining orders or preliminary injunctions and we are not required to await the outcome of any mediation or arbitration before seeking such remedies for actions brought with respect to: (i) threatened or actual conduct that will cause us, the Marks, Confidential Information, and/or the System loss or damage; (ii) to prohibit any act or omission by you or your employees that constitutes a violation of any applicable law or is dishonest or misleading to your clients or to the public; (iii) issues concerning the alleged violation of federal or state antitrust laws; (iv) securing injunctive relief or specific performance; (v) the right to indemnification or the manner in which it is exercised; (vi) any action seeking your compliance with post-termination obligations set forth in Section 15; or (vii) any action that involves an alleged breach of any restrictive covenant under Sections 6, 7, or 15.
- 17.7.2 You agree that we may obtain such injunctive relief in addition to such further or other relief as may be available at law or in equity.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Section 17.6 of the Franchise Agreement, which discusses dispute resolution through arbitration, also mentions mediation. This section is located on page 104 of the document. Specifically, it states that any arbitration or mediation proceeding will be limited to controversies between Extreme Art Studio Franchising, LLC and the franchisee, and will not include other franchisees or class action claims.
This means that if a franchisee has a dispute with Extreme Art Studio, they may be required to participate in mediation or arbitration before pursuing other legal options. However, the mediation or arbitration will only involve the individual franchisee and Extreme Art Studio, and cannot be expanded to include other franchisees or class action lawsuits. This is a common practice in franchising, as it allows franchisors to resolve disputes on an individual basis and avoid costly class action litigation.
The FDD also specifies that all arbitration proceedings will take place in the county and state of Extreme Art Studio's principal business address, which is currently in Eden Prairie, Minnesota. The arbitration award will be binding upon the parties and can be enforced in any court of competent jurisdiction. Except as required by law, the entire arbitration proceedings and related documents are confidential.
However, Extreme Art Studio retains the right to seek provisional remedies, including injunctive relief, from a court without awaiting mediation or arbitration outcomes in certain situations. These situations include actions related to protecting the Marks, Confidential Information, or the System, preventing violations of law, addressing antitrust issues, securing injunctive relief or specific performance, and enforcing post-termination obligations or restrictive covenants.