Are Southern Steer franchisees and franchisor required to negotiate disputes before other resolution methods?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee from any and all Claims and Damages that the Franchisee may at any time have the right to allege against them in connection with this Section. The Franchisee will execute the Conditional Assignment of Telephone Listing, Social Media and Director Listing Agreement attached as Attachment E and such other documents as the Franchisor may require for completing the transfer of the telephone numbers as contemplated herein.
- 21.5. Continuation of Obligations. The indemnities and covenants contained in this Agreement will continue in full force and effect subsequent to and notwithstanding the expiration, termination or Transfer of this Agreement.
22. DISPUTE RESOLUTION, WAIVERS, ETC.
22.1. Disputes Resolution. FRANCHISEE AND FRANCHISOR HAVE NEGOTIATED REGARDING A FORUM AND DISPUTE RESOLUTION MECHANISM TO RESOLVE ANY DISPUTES THAT MAY ARISE BETWEEN FRANCHISEE AND FRANCHISOR AND HAVE AGREED TO SELECT FORUMS AND DISPUTE RESOLUTION MECHANISM IN ORDER TO PROMOTE STABILITY IN FRANCHISEE RELATIONSHIP WITH FRANCHISOR AS PROVIDED IN THIS SECTION 22.
- (a) Negotiation. FRANCHISOR AND FRANCHISEE WILL USE BEST EFFORTS TO RESOLVE AND SETTLE BY DIRECT, PRIVATE NEGOTIATION ANY DISPUTES, SUBJECT TO THE EXCLUSIONS SET OUT IN SECTION 22.4 BOTH PARTIES MAY SEEK THE ADVICE AND ASSISTANCE OF LEGAL COUNSEL IN CONNECTION WITH ANY SUCH NEGOTIATION.
(b) Mediation. SUBJECT TO SECTION 22.4, IF THE PARTIES CANNOT RESOLVE AND SETTLE A DISPUTE BY PRIVATE NEGOTIATION WITHIN 60 DAYS AFTER A PARTY GIVES THE OTHER WRITTEN NOTICE THAT A DISPUTE EXISTS, THE PARTIES WILL SUBMIT ALL DISPUTES BETWEEN THE FRANCHISOR AND THE FRANCHISEE TO MANDATORY NON-BINDING MEDIATION WITHIN 20 DAYS AFTER NEGOTIATION DESCRIBED IN SECTION 22.1(a) IS CEASED BY THE PARTIES. THE MEDIATION WILL BE CONDUCTED IN ACCORDANCE WITH THE THEN-CURRENT OR SUCCESSOR CODE OF PROCEDURE.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, both the franchisor and franchisee are obligated to engage in negotiation and mediation to resolve disputes before pursuing other methods. The FDD specifies that Southern Steer and its franchisees have agreed to select forums and dispute resolution mechanisms to promote stability in their relationship.
Specifically, both parties must first use their best efforts to resolve any disputes through direct, private negotiation. This initial negotiation phase is subject to certain exclusions outlined in Section 22.4 of the FDD. Both Southern Steer and the franchisee have the option to seek legal counsel during these negotiations.
If the parties are unable to resolve the dispute through negotiation within 60 days after written notice of the dispute, they are required to submit to mandatory non-binding mediation within 20 days after the negotiation period ceases. The mediation will follow a specified code of procedure, and a mediator will be appointed accordingly, unless both parties agree on a mediator within 10 days of the mediation notice. The costs of mediation, including fees and expenses, will be split equally between Southern Steer and the franchisee.