What is the process for selecting a mediator for 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.
Franchisor and Area Developer will equally share the cost of the mediator.
The mediator will select the location for the mediation, but unless Franchisor and Area Developer agree otherwise, the mediation will be held in a metropolitan area within twenty (20) miles of Franchisor's principal office.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, mediation is required for most disputes between the franchisor and an area developer before initiating legal action or arbitration, with a minimum of four hours dedicated to mediation. However, this does not apply when either party seeks equitable relief to protect their business goodwill, such as enforcing termination obligations or non-compete covenants.
The process begins with a written notice from either the area developer or Face Foundrie to the other party, indicating their desire to mediate. The recipient of this notice then has ten days to select an independent entity that provides mediation services. If the recipient fails to name a mediation organization within this timeframe, the initiating party can either proceed as if the mediation section does not exist or choose the mediation organization themselves. If the selected organization is unwilling to serve, the other party can then select an alternative.
Once a mediation organization is designated and agrees to serve, it will schedule a mediation proceeding at a time convenient for both parties. The mediation must be held within thirty days of the organization receiving notification of the request for its services. If the 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 an area developer, franchisor (or officer thereof), or in franchise law. The mediator will choose the location for the mediation, ideally in a metropolitan area within 20 miles of Face Foundrie's principal office, unless both parties agree otherwise. The costs of the mediator are to be shared equally between Face Foundrie and the area developer.