For Kitchen Solvers, what happens if negotiation and mediation procedures do not resolve a dispute?

According to Kitchen Solvers' 2025 Franchise Disclosure Document, even if mediation is terminated without resolving the dispute, both parties agree to continue negotiations and to postpone any arbitration, legal action, or other remedies for five days after the mediation concludes. The only exception to this is if arbitration is required to prevent the expiration of a statute of limitations or to seek an injunction from a court to prevent irreparable harm.

This means that even after unsuccessful mediation, a Kitchen Solvers franchisee is obligated to attempt to resolve the issue through continued negotiation before resorting to more formal and costly dispute resolution methods like arbitration or litigation. This cooling-off period allows both parties to reassess their positions and potentially find a mutually agreeable solution, potentially saving time and money.

This clause is fairly standard in franchise agreements, as it encourages parties to exhaust all reasonable avenues for resolution before escalating to more adversarial processes. However, the franchisee should be aware of the limited exceptions where immediate action is permitted, such as to protect legal rights or prevent significant damage. Franchisees should consult with legal counsel to understand their rights and obligations in such situations.