What is the consequence of not participating in mediation before initiating legal action against Kitchen Solvers?
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.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, before a franchisee can initiate any legal action or arbitration against Kitchen Solvers (excluding actions by Kitchen Solvers for injunctive relief), the franchisee must first participate in mediation. This mediation extends to disputes involving the agreement, leases, loans, the parties' relationship, events before the agreement, the business itself, or any system standard.
Good faith participation in mediation is a precondition to starting any arbitration or legal action. This requirement includes actions to interpret or enforce the franchise agreement. The mediation process is outlined in Section 13.A.1 of the agreement.
The FDD states that failure to participate in mediation would be a breach of the franchise agreement, preventing a franchisee from pursuing legal action against Kitchen Solvers. This clause aims to encourage dispute resolution through less adversarial means, saving time and resources for both parties. However, a party may begin arbitration within this period only if the arbitration might otherwise be barred by an applicable statute of limitations or in order to request an injunction from a Court of competent jurisdiction to prevent irreparable harm.