Is good faith participation in mediation a requirement before initiating arbitration or legal action related to a Kitchen Solvers franchise agreement?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
- Mediation. The parties have reached this Agreement in good faith and in belief that it is advantageous to each of them. In recognition of the enormous strain on time, unnecessary expense and wasted resources potentially associated with litigation and/or arbitration, and in the spirit of cooperation, the parties pledge to try to resolve any dispute amicably, without litigation or arbitration. 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, franchisees are required to participate in mediation in good faith before starting arbitration or any legal action. This requirement does not apply to actions initiated by Kitchen Solvers for injunctive relief or under Section 13.A.3 or 13.B of the agreement.
The FDD specifies that franchisees and Kitchen Solvers pledge to resolve disputes amicably to avoid the expenses associated with litigation or arbitration. Before starting any legal action or arbitration, both parties must mediate any dispute. This mediation covers a wide range of issues, including disputes related to the franchise agreement, leases, financing arrangements, the parties' relationship, events before the agreement, the business itself, or any system standard.
Good faith participation in mediation is a precondition to initiating arbitration or legal action. This requirement includes actions to interpret or enforce the franchise agreement. This means that a Kitchen Solvers franchisee must demonstrate a genuine effort to resolve the dispute through mediation, even if the other party is uncooperative, before pursuing further legal remedies.