Can Spray Net specifically enforce its rights to mediation?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's rights to mediation, as set forth herein, may be specifically enforced by Franchisor.
Each party will bear its own cost of mediation and Franchisor and Franchisee will share mediator fees equally.
This agreement to mediate will survive any termination or expiration of this Agreement.
The parties will not be required to first attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 21(C) if such controversy, dispute, or claim concerns an allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, the System, or in any Confidential Information or other confidential information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net retains the right to specifically enforce its rights to mediation. Before a franchisee can initiate any legal action against Spray Net or its affiliates regarding a claim or dispute, the franchisee must first provide Spray Net with a detailed written notice outlining the specifics of the claim. Following receipt of this notice, Spray Net has 30 days to decide whether to submit the claim to mediation.
The franchisee is prohibited from starting a lawsuit against Spray Net unless Spray Net declines to pursue mediation or the mediation process concludes without resolution. Termination of mediation can occur if the mediator declares further efforts unproductive or if Spray Net issues a written declaration to that effect. Both parties are responsible for their own mediation costs, while the fees for the mediator are to be split equally between Spray Net and the franchisee.
This agreement to mediate survives any termination or expiration of the Franchise Agreement. However, there are exceptions where mediation is not required. These exceptions include allegations of violations or imminent risks of violating federally protected intellectual property rights, restrictive covenants within the agreement, or the franchisee's payment obligations. This means Spray Net can pursue legal action immediately in those cases without going through mediation first.