Can a Floors To Go settlement proposal be introduced in arbitration without consent?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
During such 30-day negotiation period, a party asserting a claim for damages or equitable relief or any defense thereto against any other party shall disclose to the other party all previously undisclosed factual evidence and legal basis of such claim or defense; provided, however, that (i) failure to provide any 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 legal 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 the 2025 Floors To Go Franchise Disclosure Document, any settlement proposal that is made during the 30-day negotiation period cannot be introduced in any arbitration or legal proceeding without obtaining prior written consent from the party who made the proposal.
This stipulation ensures that parties can engage in open and honest settlement discussions without fear that their proposals will be used against them later in arbitration or litigation. This encourages a more collaborative approach to dispute resolution during the initial negotiation phase.
For a prospective Floors To Go franchisee, this means that any offers or counter-offers made during settlement negotiations are protected and cannot be used as evidence in arbitration unless explicit written consent is given. This allows franchisees to explore settlement options without the risk of prejudicing their position should the matter proceed to arbitration.