Can Mr. Sandless specifically enforce its rights to mediation?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
r, or for the enforcement of, any provision of this Agreement other than the Royalty Fee section.
24. CHOICE OF LAW; DISPUTE RESOLUTION
24.1 Governing Law
This Agreement shall be deemed to have been made in the Commonwealth of Pennsylvania and shall be construed according to the laws of Pennsylvania.
24.2 Internal Dispute Resolution
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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, Mr. Sandless retains the right to specifically enforce its rights to mediation. Before a franchisee can initiate any legal action against Mr. Sandless or its affiliates regarding any claim or dispute, the franchisee must first provide Mr. Sandless with a detailed notice specifying the nature and grounds for the claim.
Mr. Sandless then has 30 days to decide whether to exercise its option to submit the claim to mediation. This mediation will take place in Delaware County, Pennsylvania, under the rules of the National Franchise Mediation Program (NFMP). The 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 not worthwhile or by Mr. Sandless's own declaration.
Each party is responsible for their own mediation costs and will equally share the filing fees imposed by the NFMP and the mediator's fees. Furthermore, Mr. Sandless's officers, directors, shareholders, agents, and employees are considered third-party beneficiaries of the agreement, allowing them to specifically enforce the right to mediate claims asserted against them by the franchisee. This clause ensures that Mr. Sandless can compel mediation, potentially avoiding costly and time-consuming litigation.