Besides the franchisee, which other parties related to the franchisee are included in the Kitchen Solvers mediation process?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Other than an action by us under Section 13.A.3 or 13.B of this Agreement, before beginning any legal action or arbitration, the parties agree to mediate any dispute, controversy or claim between you and/or any of your owners, affiliates, officers, directors, shareholders, guarantors, employees, owners or members (each a "Franchisee Related Party"), on the one hand, and us, and/or any of our affiliates, officers, directors, shareholders, members, guarantors, employees, representatives, independent contractors or owners (each a "Franchisor Related
Party"), on the other hand, including, without limitation, in connection with any dispute, controversy or claim arising under, out of, in connection with or in relation to: (a) this Agreement; (b) any lease or sublease for your Franchised Business; (c) any loan or other finance arrangement between us and our affiliates and you; (d) the parties' relationship; (e) events occurring prior to the entry into this Agreement; (f) the Business; or (g) any System standard, in accordance with the procedures set forth in this Section 13.A.1, inclusive of all subparts. Good faith participation in these procedures to the greatest extent reasonably possible, despite lack of cooperation by one or more of the other parties, is a precondition to initiating any arbitration or legal action, including any action to interpret or enforce this Agreement. The Mediation shall be conducted in accordance with the following provisions:
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the mediation process includes not only the franchisee but also other related parties. Specifically, the agreement extends to any of the franchisee's owners, affiliates, officers, directors, shareholders, guarantors, employees, owners, or members, collectively referred to as "Franchisee Related Party." This means that if a dispute arises, Kitchen Solvers requires that all these individuals and entities attempt to resolve the issue through mediation before pursuing legal action or arbitration.
This requirement is significant for prospective Kitchen Solvers franchisees because it broadens the scope of dispute resolution beyond just the franchisee themselves. If a franchisee's business involves multiple owners or investors, all of those parties are obligated to participate in mediation. This can add complexity to the resolution process, as more individuals and entities need to be aligned and cooperative.
Furthermore, the FDD specifies that good faith participation in mediation is a precondition to initiating any arbitration or legal action. This means that franchisees and their related parties must demonstrate a genuine effort to resolve the dispute through mediation, even if they do not believe it will be successful. Failure to do so could prevent them from pursuing further legal remedies. This clause emphasizes the importance Kitchen Solvers places on attempting to resolve disputes amicably and avoiding costly and time-consuming litigation.
In summary, the Kitchen Solvers franchise agreement mandates that a wide range of parties connected to the franchisee, including owners, affiliates, and employees, must participate in mediation before any legal actions can be taken. This requirement aims to foster cooperation and reduce the likelihood of litigation, but it also places additional obligations on the franchisee and related parties to engage in good faith dispute resolution efforts.