What is the process for initiating mediation with Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer 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, mediation is required for most disputes before initiating legal action or arbitration, with exceptions for seeking equitable relief to protect business goodwill, such as enforcing termination obligations or non-compete agreements. To begin mediation, the franchisee must provide written notice to Face Foundrie expressing their desire to mediate. The party receiving the notice 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.
Once a mediation service is selected and agrees to serve, they will schedule the mediation at a time convenient for both Face Foundrie and the franchisee. The mediation must occur within thirty days of the mediation organization receiving the request for services. If both parties cannot agree on a date, the mediation organization will select a reasonable date considering any scheduling conflicts.
The mediator must have at least ten years of experience as a franchisee, franchisor, or in franchise law. The costs of the mediator are shared equally between Face Foundrie and the franchisee. Unless otherwise agreed, the mediation will take place in a metropolitan area within 20 miles of Face Foundrie's principal office. The mediation session must last for a minimum of four hours.