What happens if a party refuses to participate in mediation for 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 Franchise Disclosure Document, if one party demands mediation in a dispute and the other party does not respond within 30 days of written notice or indicates a refusal to participate, the party that initiated the mediation demand can proceed with other forms of dispute resolution. This means that the requirement to mediate is waived if one party is unwilling to engage in the process.
This clause ensures that disputes can move forward even if one party is uncooperative. However, it's important to note that this mediation requirement does not apply to requests for injunctive relief or specific performance authorized by the franchise agreement, which can be immediately brought in a court of competent jurisdiction.
This type of mediation clause is common in franchise agreements, as it encourages parties to attempt to resolve disputes amicably before resorting to more costly and time-consuming litigation or arbitration. However, the option to proceed with other dispute resolution methods if mediation fails or is refused protects both the franchisor and franchisee from being held hostage by an uncooperative party.