What is the significance of the parties reaching the Kitchen Solvers agreement in good faith?
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 Kitchen Solvers' 2025 Franchise Disclosure Document, the agreement emphasizes that both parties enter the agreement in good faith, believing it will benefit them. This acknowledgment is significant because it sets the tone for the relationship and influences how disputes are handled.
The FDD highlights the importance of resolving disputes amicably through mediation before resorting to litigation or arbitration. This commitment to good faith aims to save time, reduce expenses, and conserve resources. Before initiating any legal action, both Kitchen Solvers and the franchisee must participate in mediation to resolve any dispute.
Good faith participation in mediation is a precondition to initiating any arbitration or legal action, including any action to interpret or enforce the agreement. This requirement underscores the importance of cooperation and open communication in resolving conflicts. Even if one party is uncooperative, the other party is still expected to make a reasonable effort to mediate the dispute in good faith.