What is the first step in resolving a claim or controversy related to the Jersey Mikes agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 27.2 EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, ANY CLAIM OR CONTROVERSY ARISING OUT OF OR R ELATED TO THIS AGREEMENT, OR THE MAKING, PERFORMANCE, BREACH, OR INTERPRETATION OF THIS AGREEMENT, EXCEPT FOR ANY ACTIONS BROUGHT WITH RESPECT TO: I) OWNERSHIP OR USE OF THE MARKS; II) SECURING INJUNCTIVE RELIEF PURSUANT TO SECTION 27.6; III) ANY COVENANT LISTED WITHIN SECTION 16 OR CONDITIONS WITHIN SECTION 17 OF THIS AGREEMENT; IV) THE RIGHT TO INDEMNIFICATION OR THE MANNER IN WHICH IT IS EXERCISED; SHALL FIRST BE THE SUBJECT OF AN INFORMAL MEETING BETWEEN THE PARTIES TO RESOLVE THE DISPUTE AND THEN SUBJECT TO NON-BINDING MEDIATION.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, the initial step in resolving any claim or controversy related to the agreement involves an informal meeting between the involved parties. This applies to any claim arising from the agreement, its making, performance, breach, or interpretation.
However, there are exceptions to this initial step. Actions related to the ownership or use of Jersey Mikes' marks, securing injunctive relief, covenants listed within Section 16 or conditions within Section 17 of the agreement, or the right to indemnification do not require an informal meeting first. These specific actions may proceed directly to other resolution methods.
Following the informal meeting, if the dispute remains unresolved, the matter is then subject to non-binding mediation. This two-step process—informal meeting followed by mediation—aims to facilitate resolution before resorting to more formal or adversarial proceedings. This approach is fairly common in franchising, as it encourages parties to find mutually agreeable solutions early on, potentially saving time and legal costs.