What rules govern the mediation process for Mr. Sandless disputes?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
You must first bring any claim or dispute between you and us to our President and/or Chief Executive Officer. You must exhaust this internal dispute resolution procedure before you may bring your dispute before a third-party.
24.3 Mediation
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.
24.4 Third Party Beneficiaries
Our officers, directors, shareholders, agents and/or employees are express third party beneficiaries of this Agreement and the mediation provision contained herein, each having authority to specifically enforce the right to mediate claims asserted against such person(s) by you.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, any claims or disputes between the franchisee and Mr. Sandless or its affiliates must first be brought to the President and/or Chief Executive Officer of Mr. Sandless for internal dispute resolution. This internal process must be exhausted before pursuing third-party resolution.
At Mr. Sandless's option, disputes may then be submitted to mediation in Delaware County, Pennsylvania, under the National Franchise Mediation Program (NFMP), following the NFMP's Commercial Mediation Rules. Before starting any legal action, the franchisee must provide Mr. Sandless with a detailed notice specifying the nature and grounds of the claim. Mr. Sandless then has 30 days to decide whether to submit the dispute to mediation.
The franchisee cannot commence legal action unless Mr. Sandless declines mediation or the mediation is terminated. Termination can occur either through a written declaration from the mediator that further efforts are not worthwhile or through a written declaration by Mr. Sandless. Each party is responsible for their own mediation costs and will equally share the filing fee imposed by the NFMP and the mediator's fees. Mr. Sandless retains the right to enforce the mediation provision specifically.
Mr. Sandless's officers, directors, shareholders, agents, and employees are considered third-party beneficiaries of the agreement and the mediation provision, allowing them to enforce the right to mediate claims asserted against them by the franchisee. This structured mediation process aims to resolve disputes efficiently before resorting to legal action, potentially saving both parties time and expenses.