What is the required intention of the parties when participating in the mediation procedure for Kitchen Solvers?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties agree to participate in the mediation proceedings in good faith with the intention of resolving the dispute if at all possible within sixty (60) days of the notice from the party seeking to initiate the mediation procedures. The parties agree to participate in the mediation procedure to its conclusion, as set forth in this section.
The parties commit to participate in the proceedings in good faith with the intention of resolving the dispute if at all possible. The mediation may be concluded: (a) by the signing of a settlement agreement by the parties; (b) by the mediator's declaration that the mediation is terminated; or (c) by a written declaration of either party, no earlier than at the conclusion of a full day's mediation, that the mediation is terminated. 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 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, when participating in mediation proceedings, both parties must engage in good faith with the intention of resolving the dispute, if at all possible, within 60 days of the initial notice to initiate mediation. The parties are obligated to participate in the mediation procedure until its conclusion.
This means that a Kitchen Solvers franchisee entering mediation with the franchisor is expected to be genuinely committed to finding a resolution. Simply going through the motions without a sincere effort to compromise could be seen as a failure to participate in good faith. This requirement underscores the importance of approaching mediation with an open mind and a willingness to explore potential solutions.
Even if the mediation does not result in a resolution, the parties involved with Kitchen Solvers must continue negotiations and are restricted from starting any arbitration or legal action for at least five days after the mediation concludes. This mandatory waiting period allows both parties additional time to consider their positions and potentially reach an agreement before resorting to more adversarial methods. However, there is an exception to this rule, allowing a party to begin arbitration sooner if waiting might cause the arbitration to be barred by a statute of limitations or if an injunction is needed from a court to prevent irreparable harm.