Where must mediation occur for disputes related to a Mr. Sandless franchise agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |
|---|---|---|---|
| t. | Integration/merger clause | 25.1 | Only the terms of the Franchise Agreement are binding (subject to applicable federal and/or state law). Any representations or promises outside of the Franchise Disclosure Document and other agreements may not be enforceable. 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. |
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, disputes or claims relating to the Franchise Agreement must first be submitted to mediation in Delaware County, Pennsylvania, under the National Franchise Mediation Program (NFMP). This mediation will follow the NFMP's rules in effect at the time of the dispute. However, this is subject to state law, meaning that certain state laws may override this requirement.
Before initiating mediation, a franchisee must first present any dispute or claim to the President of Mr. Sandless for discussion. This initial step is required before involving any third party in the dispute. If mediation does not resolve the issue, the Franchise Agreement dictates 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, again subject to state law.
This requirement to mediate in Pennsylvania could pose a significant burden for franchisees located far from Pennsylvania, as they would incur travel and legal costs to attend mediation sessions. Prospective franchisees should investigate whether their state laws have any provisions that might supersede the requirement to mediate in Pennsylvania, as indicated by the phrase "subject to state law" throughout Item 17.