factual

Are negotiations and mediation proceedings related to Southern Steer kept confidential?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 22.2. Confidentiality. All negotiations and mediation proceedings (including all statements and settlement offers made by either party or the mediator in connection with the negotiation and mediation) will be strictly confidential, will be considered as compromise and settlement negotiations for purposes of applicable rules of evidence, and will not be admissible or otherwise used in connection with any court or arbitration proceeding for any purpose.

Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)

What This Means (2025 FDD)

According to Southern Steer's 2025 Franchise Disclosure Document, all negotiations and mediation proceedings are to be kept strictly confidential. This includes all statements and settlement offers made by either party or the mediator during these proceedings. This confidentiality extends to ensuring that such discussions are considered compromise and settlement negotiations, thus protecting them under applicable rules of evidence. This means that nothing discussed or offered during negotiation or mediation can be used against either party in any subsequent court or arbitration proceeding.

This provision aims to encourage open and honest communication during dispute resolution. By ensuring confidentiality, Southern Steer hopes to create an environment where both parties can explore potential resolutions without fear that their words or offers will be used against them later. This can be particularly beneficial for franchisees, as it allows them to voice concerns and negotiate terms without risking their legal position.

However, it is important to note that while the negotiations and mediations themselves are confidential, the final outcome or settlement agreement may not necessarily be. Franchisees should consult with legal counsel to understand the full scope of confidentiality and how it applies to their specific situation. This confidentiality clause is a fairly standard practice in franchising, as it promotes a more constructive approach to resolving disputes.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.