What is the role of good faith in the Kitchen Solvers dispute resolution process?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Kitchen Solvers Franchise Disclosure Document, good faith plays a significant role in the dispute resolution process. The document states that the agreement between Kitchen Solvers and the franchisee is reached in good faith, with both parties believing it to be advantageous.
To resolve disputes, Kitchen Solvers requires both parties to pledge to resolve any dispute amicably, without resorting to litigation or arbitration. Before initiating any legal action or arbitration (except for actions by Kitchen Solvers for injunctive relief or related to specific agreement sections), both parties must mediate any dispute. This mediation extends to disputes involving the franchisee, their related parties, Kitchen Solvers, and their related parties, covering a range of issues including the franchise agreement, leases, financing arrangements, the parties' relationship, events before the agreement, the business itself, or any system standard.
The FDD emphasizes that good faith participation in these mediation procedures is a precondition to initiating any arbitration or legal action. This requirement applies even if one or more parties are uncooperative. This means that a Kitchen Solvers franchisee must demonstrate a genuine effort to resolve disputes through mediation before pursuing other legal avenues, highlighting the importance Kitchen Solvers places on attempting to resolve conflicts through cooperation and good faith negotiation.