Is dispute resolution by arbitration or mediation required for Mr. Sandless franchise disputes?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in the agreement or in any related agreement is intended to disclaim the representations made in the Franchise Disclosure Document. | | u. | Dispute resolution by arbitration or mediation | 24.2, 24.3 | You must bring any dispute or claim to our President first for discussion before you may bring the dispute to a third party. At our option, all claims or disputes relating to the Franchise Agreement must be submitted first to mediation in Delaware County, Pennsylvania under the National Franchise Mediation Program ("NFMP") in accordance with the NFMP's mediation rules then in effect. (subject to state law) | | v.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, dispute resolution involves an initial discussion with the company's President. Following this, Mr. Sandless may require mediation. Specifically, all claims or disputes related to the Franchise Agreement may be submitted first to mediation in Delaware County, Pennsylvania, under the National Franchise Mediation Program (NFMP), following the NFMP's mediation rules. This requirement is subject to state law.
For a prospective franchisee, this means that before pursuing any formal legal action, they must first attempt to resolve the issue informally with Mr. Sandless's President. If this is unsuccessful, Mr. Sandless has the option to mandate mediation. Mediation, if required, would take place in Delaware County, Pennsylvania, potentially requiring the franchisee to travel. The mediation process will be governed by the rules of the National Franchise Mediation Program.
It's important to note that these dispute resolution procedures are subject to state law, meaning that certain state franchise laws may override or modify these requirements. Additionally, for any dispute not subject to or resolved by mediation, the FDD indicates that litigation can only occur in a court of general jurisdiction in Delaware County, Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania.