What must happen before a party can begin any arbitration or legal action after a Kitchen Solvers mediation?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Even if the mediation is terminated without resolving the dispute, the parties agree not to terminate negotiations and not to begin any arbitration or legal action or seek another remedy before the expiration of five (5) days following the mediation.
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.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, after a mediation has ended without resolving a dispute, both parties must wait a minimum of five days before starting any arbitration or legal action. This mandatory waiting period applies even if the mediation concludes without a resolution.
However, there are two exceptions to this rule. A party can begin arbitration sooner if waiting would mean the claim is barred by the statute of limitations. Also, a party can immediately seek an injunction from a court to prevent irreparable harm.
This clause is designed to encourage parties to carefully consider their positions and explore all possible avenues for settlement before resorting to more formal and costly dispute resolution methods like arbitration or litigation. The exceptions recognize situations where immediate action is necessary to protect a party's rights or prevent significant damage.