factual

If the Face Foundrie franchisee initiates mediation, who is responsible for selecting the independent entity to serve as mediator?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

18.02 Mediation. Except where it is necessary for either Franchisor or Franchisee to obtain equitable relief to preserve the goodwill of their respective businesses (including, but not limited to, the enforcement of obligations upon termination of this Agreement and the covenants not to compete contained in this Agreement), Franchisor and Franchisee each agree to enter into mediation of all disputes involving this Agreement or any other aspect of the relationship between them, for a minimum of four (4) hours, before initiating any legal action or arbitration against the other. Upon written notice by either Franchisee to Franchisor, to the other, of Franchisee or Franchisor's desire to mediate, the party receiving the notice will select an independent entity that provides mediation services to serve as mediator in the proceeding. If the party receiving the notice of intent to mediate does not name such an organization within ten (10) days from the date the notice of intention to mediate is received, then the other party may proceed as if this Section 18.02 did not exist, or, at its option, make the selection of the organization to provide mediation services. If Franchisee or Franchisor selects an organization that is unwilling to serve as mediator, then the other party may select the organization. Once the organization is designated and agrees to accept the appointment as mediator, the organization will be directed to schedule a mediation proceeding at a time mutually convenient to Franchisee and Franchisor. The mediation will be held within thirty (30) days following receipt by the mediation organization of notification that its services are requested. If Franchisee and Franchisor cannot agree on a date for mediation, then the mediation organization will select a date it believes is reasonable for both parties, given all of the claimed conflicts in dates. The person actually mediating the dispute will be required to have at least ten (10) years of experience as either a franchisee or franchisor (or as an officer of such an entity) or in franchise law. Franchisor and Franchisee will equally share the cost of the mediator. The mediator will select the location for the mediation, but unless Franchisor and Franchisee agree otherwise, the mediation will be held in a metropolitan area within twenty (20) miles of Franchisor's principal office.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2025 FDD)

According to Face Foundrie's 2025 Franchise Disclosure Document, if a franchisee initiates mediation, the franchisor is responsible for selecting the independent mediation entity. Upon receiving written notice from the franchisee about their desire to mediate, Face Foundrie has ten days to select an independent entity that provides mediation services.

If Face Foundrie fails to name such an organization within the specified ten-day period, the franchisee has the option to either proceed as if the mediation clause does not exist or to select the organization to provide mediation services themselves. This provision ensures that mediation can proceed even if one party is unresponsive.

If the initial organization selected is unwilling to serve as mediator, the other party then has the option to select an alternative organization. The person mediating the dispute must have at least ten years of experience as either a franchisee, franchisor, or an officer of such an entity, or in franchise law. Face Foundrie and the franchisee will equally share the cost of the mediator, and unless otherwise agreed, the mediation will occur in a metropolitan area within 20 miles of Face Foundrie's principal office.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.