What is the purpose of the 'First Notice' in the Floors To Go dispute resolution process?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the 'First Notice' serves as the initial step in resolving disputes. If a party wishes to address a dispute related to the franchise agreement, they must first provide a written 'First Notice' to the other party. This notice should detail the nature of the dispute in a reasonably comprehensive manner.
The primary purpose of this 'First Notice' is to initiate a period of good-faith negotiation between Floors To Go and the franchisee. Both parties are expected to make their best efforts to resolve the dispute within 15 days of the 'First Notice' being given and received. This initial negotiation period aims to find a resolution without resorting to more formal and costly dispute resolution methods like arbitration.
If the dispute remains unresolved after the 15-day negotiation period, the party that issued the 'First Notice' must then provide a 'Dispute Notice'. This subsequent notice requires a full disclosure of all factual evidence and a statement of the applicable legal basis for the dispute. However, any settlement proposals made during this process are considered part of settlement discussions and cannot be used in later arbitration or proceedings without written consent.