Where will mediation be held for disputes related to the Hck Hot Chicken Area Development Agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Development Agreement | Summary from the sale of fried chicken, or (iii) any business engaged in the |
|---|---|---|
| preparation, production or sale, at wholesale, of any fried chicken food product. Notwithstanding the foregoing, Competitive Activities shall not include the direct or indirect ownership solely as an investment, of securities of any entity which are traded on any national securities exchange if the owner thereof (i) is not a controlling person of, or a member of a group which controls, such entity and (ii) does not, directly or indirectly, own 5% or more of any class of securities of such entity. | ||
| r. Non-competition covenants after the franchise is terminated or expires | Section 8.2 | Except with our express written consent, no involvement in any Competitive Activities, as defined above, for 2years within the Development Area. |
| s. Modification of the | Section 8.3 | The Area Development Agreement may be modified only by |
| agreement | written agreement between the parties. | |
| t. Integration/merger clause | Section 11.9 | Only the terms of the Area Development Agreement are binding (subject to applicable state law). Any representations or promises outside of this Franchise Disclosure Document and Area Development Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | Section 10 | Before either of us may file for arbitration, you and we agree to attempt to resolve any dispute pursuant to mediation held in the principal city closest to our principal place of business (currently Sarasota, FL) and the mediation will be governed in accordance with Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc., unless otherwise agreed, subject to applicable state law. |
Source: Item 17 — RENEWAL, TERMINATIONS, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–51)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, before either party can file for arbitration regarding a dispute, both Hck Hot Chicken and the franchisee must attempt to resolve the dispute through mediation. This mediation will be held in the principal city closest to Hck Hot Chicken's principal place of business, which is currently Sarasota, FL.
The mediation process will be governed by the Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc., unless both parties agree to an alternative set of rules. This ensures a structured and recognized framework for the mediation. It is important to note that these mediation proceedings are subject to applicable state law, which could influence the process or enforceability of any agreements reached.
This requirement for mediation before arbitration is a fairly standard practice in franchising, intended to encourage parties to resolve disputes amicably and efficiently before resorting to more costly and time-consuming arbitration or litigation. Franchisees should be aware of this provision and factor in the potential costs and time commitment associated with traveling to Sarasota, FL for mediation should a dispute arise with Hck Hot Chicken.