factual

What is the initial step in the dispute resolution process for Kitchen Solvers franchisees?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. 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, the initial step in resolving disputes is mediation. Kitchen Solvers emphasizes the importance of resolving disputes amicably to avoid the expenses and wasted resources associated with litigation or arbitration.

Before initiating any legal action or arbitration, Kitchen Solvers franchisees must agree to mediate any dispute with Kitchen Solvers. This mediation extends to controversies or claims involving the franchisee, their owners, affiliates, officers, and employees, as well as Kitchen Solvers and its related parties. The disputes covered include those arising from the Franchise Agreement, leases, financial arrangements, the franchisee-franchisor relationship, events before the agreement, the business itself, or any system standard.

The FDD specifies that good faith participation in mediation is a precondition to starting any arbitration or legal action. This requirement applies even if the other party is uncooperative. The mediation process is detailed within Section 13.A.1 of the agreement, which outlines the procedures to be followed during mediation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.