What is the initial step a Mr. Sandless franchisee must take to resolve a dispute or claim?

According to Mr. Sandless's 2025 Franchise Disclosure Document, before a franchisee can take a dispute or claim to a third party, they must first bring it to the attention of the President of Mr. Sandless for discussion. This initial step is a prerequisite before any formal dispute resolution processes, such as mediation or litigation, can be initiated.

This requirement aims to foster open communication and provide an opportunity for the franchisee and Mr. Sandless to resolve issues internally. By engaging in direct discussions with the President, franchisees may be able to address concerns, clarify misunderstandings, and potentially reach a mutually agreeable solution without resorting to more formal and costly methods of dispute resolution.

However, the FDD also states that 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. This is at the option of Mr. Sandless and is subject to state law. Any disputes not subject to or not resolved by mediation, the parties agree to litigate only in a court of general jurisdiction in Delaware County, Pennsylvania, or the United States District Court for the Eastern District of Pennsylvania, also subject to state law.

It is important for prospective franchisees to understand this initial step and consider its implications. While it promotes direct communication, franchisees should also be aware of the subsequent dispute resolution options available and any associated costs or legal considerations.