What is the process for selecting a mediator for disputes involving Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
per will also be entitled to the entry of temporary restraining orders and temporary and permanent injunctions enforcing these provisions. If Franchisor is successful in obtaining an injunction, or any other judicial relief or order from an arbitrator against Area Developer, or in successfully defending any claim Area Developer has brought against Franchisor, Area Developer will pay Franchisor an amount equal to all of Franchisor's costs of prosecuting and defending the action, including reasonable attorneys' fees, costs of investigation, court and arbitration costs, and other litigation or arbitration expenses.
Franchisor and Area Developer's respective rights to obtain injunctive or other equitable relief is in addition to any other right Franchisor or Area Developer may have under this Agreement. It will in no way limit or prohibit Franchisor from obtaining money damages from Area Developer if Area Developer breaches this Agreement.
- 16.3 Mediation. 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.
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 certain exceptions for equitable relief. The mediation must last a minimum of four hours.
The process begins with a written notice from either the area developer or Face Foundrie to the other party, indicating a 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 service within this timeframe, the initiating party can either proceed as if the mediation section does not exist or choose the mediation service themselves.
If the selected mediation organization is unwilling to serve, the other party can then select an alternative. Once a mediator is agreed upon and accepts the appointment, they will schedule the mediation at a time convenient for both parties, to be held within thirty days of the organization receiving the request for services. If the parties cannot agree on a date, the mediation organization will choose a date they deem reasonable. The mediator must have at least ten years of experience as an area developer, franchisor, or officer of such an entity, or in franchise law. The cost of the mediator is shared equally between Face Foundrie and the area developer, and the mediation will be held in a metropolitan area within 20 miles of Face Foundrie's principal office, unless otherwise agreed.