What is the dependency for initiating arbitration for Floors To Go disputes?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
Any dispute, controversy or claim arising out of, relating to or in connection with this Agreement, including any question regarding its validity or the termination thereof, or a breach thereof (in any such case, a "Dispute") shall be resolved pursuant to the following:
14.1. Initiation. Any party wishing to initiate consideration of a Dispute hereunder shall first give written notice (a "First Notice") to the other party setting forth in reasonable detail the nature of the Dispute. Both parties shall then use their best efforts to negotiate in good faith to diligently resolve the Dispute within fifteen (15) days of the giving and receipt of the First Notice. If the Dispute remains unresolved after the expiration of this fifteen (15) day period, then the party that delivered the First Notice, shall give written notice to the other (a "Dispute Notice"), which notice shall set forth a full disclosure of all factual evidence and a statement of the applicable legal basis of the dispute; provided, however, that (i) failure to provide such disclosure or to state any such legal basis shall not operate as a waiver of such legal basis or operate to preclude the presentation or introduction of such factual evidence in any subsequent arbitration or proceeding or otherwise constitute a waiver of any right or claim which a party may then or thereafter possess; and (ii) any settlement proposal made or provided shall be deemed to have been made or provided as part of a settlement discussion and may not be introduced in any arbitration or proceeding without the prior written consent of the party making such disclosure and/or statement.
- 14.2.
Negotiating Teams.
Upon giving and receipt of a Dispute Notice, each party shall appoint a negotiating team consisting of not less than one and not more than three representatives (each a "Negotiating Team").
The Negotiating Teams shall commence meeting within ten (10) days of receipt of the Dispute Notice and shall thereafter meet and negotiate in good faith for a period of not less than thirty (30) days to attempt to resolve the Dispute.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, initiating arbitration requires a specific process. First, the party wishing to start the dispute resolution must provide written notice, called a "First Notice," detailing the nature of the dispute to the other party. Both parties are then expected to try to resolve the dispute through good faith negotiations within 15 days of receiving the First Notice.
If the dispute remains unresolved after the initial 15-day negotiation period, the party that sent the First Notice must then send a "Dispute Notice" to the other party. This notice needs to include a full disclosure of all factual evidence and a statement of the legal basis for the dispute. However, the FDD specifies that failure to provide full disclosure or state a legal basis does not act as a waiver of such legal basis or preclude the presentation of factual evidence in any subsequent arbitration.
Upon receiving the Dispute Notice, each party must appoint a negotiating team consisting of one to three representatives. These teams are required to start meeting within 10 days of receiving the Dispute Notice and must negotiate in good faith for at least 30 days to try and resolve the dispute. This multi-step process, involving initial notice, good faith negotiation, detailed disclosure, and team-based negotiation, must be followed before arbitration can be formally initiated for any dispute related to the Floors To Go franchise agreement.