What is the role of JAMS in the mediation process outlined in the 1 800 Packouts Franchise Agreement?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- ii. Before arbitration, each Party agrees to adhere to the following procedure:
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- First, in the event of a disagreement between us, we agree to meet face-to-face within 30 days after one Party gives written notice to the other;
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- Second, if the issues between us cannot be so resolved, then the disagreement must be submitted to non-binding mediation before the Judicial Arbitration and Mediation Service (JAMS) or its successor (or an organization designated by JAMS or its successor). If JAMS is unable or unwilling to conduct such proceedings, and the Parties to the dispute cannot agree on an appropriate organization or person to conduct such proceedings, mediation will be heard by the American Arbitration Association. (AAA).
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A. You and we will agree upon a single mediator. If we cannot agree upon the mediator, then the seniormost officer, director, or manager of the association under which the mediation is to take place will choose a neutral and disinterested mediator, and such choice will be final and binding.
- B. Mediation must begin 30 days after the face-to-face meeting. Any Party may be represented by counsel and may bring persons appropriate to the proceeding with permission of the mediator.
- C. Each Party will bear the Person's costs associated with attending mediation. Each Party will equally split the cost of the mediator.
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- If mediation does not resolve the matter, you and we agree that the disagreement will be submitted to and finally resolved by binding arbitration.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, JAMS (Judicial Arbitration and Mediation Service) plays a specific role in the dispute resolution process. If a disagreement arises between 1 800 Packouts and a franchisee that cannot be resolved through an initial face-to-face meeting, the disagreement must be submitted to non-binding mediation before JAMS or its successor. If JAMS is unable or unwilling to conduct the mediation, and the parties cannot agree on an alternative organization or person, the American Arbitration Association (AAA) will handle the mediation.
During mediation, both 1 800 Packouts and the franchisee will select a single mediator. If they cannot agree on a mediator, the seniormost officer, director, or manager of the association under which the mediation is to take place will choose a neutral and disinterested mediator, whose choice will be final and binding. The mediation must begin within 30 days after the initial face-to-face meeting. Both parties have the right to be represented by counsel and bring relevant individuals to the mediation with the mediator's permission.
Each party is responsible for their own costs associated with attending the mediation, while the cost of the mediator is split equally between 1 800 Packouts and the franchisee. If the mediation does not successfully resolve the dispute, the matter will then proceed to binding arbitration. This structured approach ensures that disputes are first attempted to be resolved through less formal methods before resorting to arbitration, potentially saving time and expenses for both parties.