What specific acts allow Face Foundrie to bypass mediation and seek equitable relief?
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.
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 can seek equitable relief to protect their business interests without first going through mediation. Specifically, this applies when it is necessary to preserve the goodwill of their respective businesses. This includes enforcing obligations upon termination of the Area Development Agreement and enforcing the covenants not to compete outlined in the agreement.
This means that Face Foundrie can take immediate legal action, such as seeking a temporary restraining order or injunction, against an Area Developer if they believe the Area Developer is engaging in activities that could harm the brand's reputation or violate the terms of the agreement, such as breaching non-compete clauses after termination. Similarly, an Area Developer can seek immediate equitable relief if Face Foundrie acts in a way that threatens the Area Developer's business goodwill.
This clause is designed to provide a swift legal recourse in situations where waiting for mediation could cause irreparable harm. However, if either party initiates litigation or arbitration without attempting mediation first (unless the other party fails to respond or refuses mediation), the court or arbitrator may dismiss the case and award attorney's fees and costs to the party that was wrongly sued. This encourages both parties to attempt mediation before pursuing more aggressive legal options, except in cases where immediate equitable relief is necessary.