What is the minimum duration required for mediation involving Face Foundrie disputes?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Except where it is necessary for either Franchisor or Area Developer 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 Area Developer 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 Area Developer to Franchisor, to the other, of Area Developer 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 did not exist, or, at its option, make the selection of the organization to provide mediation services.
If Area Developer 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 Area Developer 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 Area Developer 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 an Area Developer or franchisor (or as an officer of such an entity) or in franchise law.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, both Face Foundrie and the Area Developer must participate in mediation for a minimum of four hours before starting any legal action or arbitration against each other. This applies to all disputes related to the Franchise Agreement or any aspect of their relationship. However, there is an exception: if either party needs to seek equitable relief to protect their business's goodwill, such as enforcing obligations upon termination or non-compete covenants, they can bypass mediation and immediately pursue legal action.
To initiate mediation, the party desiring mediation must send a written notice to the other party. The receiving party then has ten days to select an independent mediation service. If they fail to do so, the initiating party can either proceed without mediation or choose the mediation service themselves. The selected mediation organization will schedule the mediation at a time convenient for both parties, and the mediation must occur within thirty days of the organization being notified of the request for its services. If both parties cannot agree on a mediation date, the mediation organization will choose a reasonable date considering any scheduling conflicts.
The mediator chosen must have at least ten years of experience as an Area Developer, franchisor, an officer of such an entity, or in franchise law. The cost of the mediator is to be shared equally between Face Foundrie and the Area Developer. Unless both parties agree otherwise, the mediation will take place in a metropolitan area within twenty miles of Face Foundrie's main office. If a party initiates litigation or arbitration without fulfilling their mediation obligations, the court or arbitrator is required to dismiss the case without prejudice and award reasonable attorney's fees and costs to the party seeking the dismissal.