How are the costs of mediation shared between parties in an Afuri Ramen Dumpling dispute?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
liabilities and responsibilities under this Agreement will be joint and several obligations of each such person and entity.
- 9.8 Enforcement. From time to time there may be controversy about this Agreement, its interpretation, or performance or breach by the parties.
- 9.8.1 Mediation. If a dispute arises between the parties, before taking any other legal action,
the parties agree to participate in at least six hours of mediation in accordance with the mediation procedures of Arbitration Service of Portland, Inc. or of any similar organization that specializes in the mediation of commercial business disputes. The party demanding mediation must provide written notice to the other party of the demand for mediation. If the other party does not respond to the mediation demand within 30 days of written notice, or indicates a refusal to participate in mediation, then the party providing notice may proceed with other forms of dispute resolution. The parties agree to equally share the costs of mediation.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, if a dispute arises between Afuri Ramen Dumpling and a franchisee, both parties must participate in at least six hours of mediation before taking any other legal action. This mediation should align with the procedures of Arbitration Service of Portland, Inc., or a similar organization specializing in commercial business disputes. The party initiating the mediation is responsible for providing written notice to the other party. If the recipient of the notice doesn't respond within 30 days or refuses to participate, the initiating party can then pursue other dispute resolution methods.
Importantly, the FDD states that the costs associated with this mediation process are to be shared equally between Afuri Ramen Dumpling and the franchisee. This equal sharing of costs is a fairly standard practice in franchise agreements, as it ensures that neither party is unduly burdened by the expense of attempting to resolve the dispute through mediation.
However, the requirement for mediation does not apply to requests for injunctive relief or specific performance related to the franchise agreement. Afuri Ramen Dumpling or the franchisee can pursue these legal remedies in a court of law without first undergoing mediation. This exception is also common, as injunctive relief often involves urgent matters requiring immediate court intervention.
For a prospective Afuri Ramen Dumpling franchisee, this means that in the event of a dispute with the franchisor, they will be expected to share the costs of mediation equally. Understanding this provision is crucial for budgeting and planning in case disagreements arise during the franchise term.