Under what mediation rules will disputes be handled for a Mr. Sandless franchise?
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 will be handled under specific mediation rules. Before involving a third party, a franchisee must first discuss any dispute or claim with the President of Mr. Sandless. If Mr. Sandless chooses, all claims or disputes related to the Franchise Agreement must initially be submitted to mediation. This mediation will take place in Delaware County, Pennsylvania, under the National Franchise Mediation Program (NFMP). The mediation will follow the NFMP's rules that are in effect at that time. This is subject to state law.
This means that a Mr. Sandless franchisee may be required to participate in mediation before pursuing other legal avenues, such as arbitration or litigation. The location of the mediation is set in Delaware County, Pennsylvania, which may require the franchisee to travel depending on their location. The rules and procedures of the NFMP will govern the mediation process, which the franchisee should become familiar with if a dispute arises.
It's important to note that the franchisor has the option to require mediation, but the franchisee does not have the same explicit right. Also, the agreement specifies that the laws of Pennsylvania govern the agreement, but this is subject to state law, which may provide additional protections or requirements for franchisees depending on their location. Franchisees should consult with legal counsel to understand their rights and obligations regarding dispute resolution under the Franchise Agreement and applicable state laws.