What happens if a party initiates arbitration before attempting mediation with Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent precluded by Applicable Law, the parties hereby pledge and agree that prior to filing any arbitration or lawsuit (other than suits described below in Section 10.5), they shall first attempt to resolve any dispute between the parties pursuant to mediation conducted in accordance with the Rules of Practice and Procedu
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, before initiating arbitration or a lawsuit (excluding specific suits outlined in Section 10.5), both parties are obligated to first attempt to resolve any disputes through mediation. This mediation must adhere to the Rules of Practice and Procedure. Therefore, initiating arbitration before attempting mediation would be a breach of the agreement.
This requirement for mediation before arbitration is a fairly common practice in franchising, intended to encourage parties to resolve disputes amicably and efficiently. Mediation can often be a less costly and time-consuming process compared to arbitration or litigation. By mandating mediation, Hck Hot Chicken aims to foster a collaborative approach to conflict resolution.
However, the FDD excerpt does not specify the consequences of failing to mediate before initiating arbitration. A prospective Hck Hot Chicken franchisee should seek clarification from the franchisor regarding the specific ramifications of bypassing the mediation step. This might include the arbitration being stayed (put on hold) until mediation is completed, or other penalties.