factual

If Mr. Sandless elects mediation, where must the mediation take place?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

At our option, all claims or disputes between you and us or our affiliates arising out of, or in any way relating to, this Agreement, or any of the parties' respective rights and obligations arising out of this Agreement, shall be submitted first to mediation in Delaware County, Pennsylvania under the auspices of the National Franchise Mediation Program ("NFMP"), in accordance with the NFMP's Commercial Mediation Rules then in effect. Before commencing any legal action against us or our affiliates with respect to any such claim or dispute, you must submit a notice to us which specifies, in detail, the precise nature and grounds of such claim or dispute. We will have a period of thirty (30) days following receipt of such notice within which to notify you as to whether we or our affiliates elect to exercise our option to submit such claim or dispute to mediation. You may not commence any action against us or our affiliates with respect to any such claim or dispute in any court unless we fail to exercise our option to submit such claim or dispute to mediation, or such mediation proceedings have been terminated either: (i) as the result of a written declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as a result of a written declaration by us. The parties shall each bear their own costs of mediation and shall share equally the filing fee imposed by NFMP and the mediator's fees. Our rights to mediation, as set forth herein, may be specifically enforced by us.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2025 FDD)

According to Mr. Sandless's 2025 Franchise Disclosure Document, if Mr. Sandless chooses mediation for any claims or disputes, the mediation must occur in Delaware County, Pennsylvania. The mediation will be conducted under the guidelines of the National Franchise Mediation Program (NFMP) and its Commercial Mediation Rules.

Before initiating any legal action against Mr. Sandless, a franchisee must first provide a detailed written notice outlining the specific nature and grounds for the claim or dispute. Mr. Sandless then has 30 days to decide whether to exercise its option to submit the matter to mediation. A franchisee cannot proceed with a lawsuit unless Mr. Sandless declines mediation or the mediation is terminated, either by the mediator's declaration that further efforts are unproductive or by Mr. Sandless's own declaration.

The costs associated with mediation include each party bearing their own expenses, while the filing fee imposed by the NFMP and the mediator's fees are to be shared equally between the parties. Mr. Sandless retains the right to specifically enforce the mediation provision. This clause also extends the right to mediate claims to Mr. Sandless's officers, directors, shareholders, agents, and employees, making them express third-party beneficiaries of the agreement.

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.