Prior to filing for arbitration, what dispute resolution method does All County require?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.9. Costs and Attorneys' Fees. If we incur expenses in connection with your failure to pay when due amounts owed to us, to submit when due any reports, information or supporting records or otherwise to comply with this Agreement, you agree to reimburse us for any of the costs and expenses which we incur, including, without limitation, reasonable accounting, attorneys', arbitrators' and related fees.
- 25.10. You May Not Withhold Payments Due to Us. You agree that you will not withhold payment of any amounts owed to us on the grounds of our alleged nonperformance of any of our obligations hereunder. You agree that all such claims will, if not otherwise resolved by us, be submitted to arbitration as provided in Article 25.12.
- 25.11. Rights of Parties are Cumulative. Our and your rights hereunder are cumulative, and no exercise or enforcement by us or you of any right or remedy hereunder will preclude our or your exercise or enforcement of any other right or remedy hereunder which we or you are entitled by law to enforce.
25.12. DISPUTE RESOLUTION.
- 25.12.1. Mediation. Except as provided in Article 25.12.3., prior to filing any demand for arbitration, the parties agree to mediate any dispute, controversy or claim between the parties and any of our or your affiliates, officers, directors, shareholders, members, guarantors, employees or owners arising under, out of, in connection with or in relation to this Agreement, any lease or sublease for your Business, any loan or other finance arrangement between us or our affiliates and you, the parties' relationship, your Business, or any Methods of Operation, Operating System or Operating Standard, in accordance with the following procedures:
- 25.12.1.1. The party seeking mediation must commence mediation by sending the other party, in accordance with Article 26, a written notice of its request for mediation headed "Notification of Dispute". The Notification of Dispute will specify, to the fullest extent possible, the party's version of the facts surrounding the dispute, the amount of damages and the nature of any injunctive or other relief such party claims. The party (or parties as the case may be) receiving a Notification of Dispute will respond within
twenty (20) days after receipt thereof, in accordance with Article 26, stating its version of the facts, and, if applicable, its position as to damages sought by the party initiating the dispute procedure; provided, however, that if the dispute has been the subject of a default notice given under Article 22 of this Agreement, the other party will respond within ten (10) business days.
- 25.12.1.2. Upon receipt of a Notification of Dispute and response under Article 25.12.1., the parties will endeavor, in good faith, to resolve the dispute outlined in the Notification of Dispute and response. If the parties have been unable to resolve a dispute outlined in a Notification of Dispute or a response thereto within twenty (20) days after receipt of the response, either party may initiate a mediation procedure in accordance with the American Arbitration Association ("AAA"), pursuant to its Commercial Mediation Procedures, and unless otherwise agreed by the parties will take place in the city of our then-current corporate headquarters. The parties must select a mediator jointly.
- 25.12.1.3. All mediation sessions will occur in Florida at a mutually agreed location and must be attended by your Principal Owners or Managing Owner (and any other persons with authority to settle the dispute on your behalf) and our representatives(s) who is/are authorized to settle the dispute. The parties may be represented by counsel at the mediation. The parties agree to participate in the mediation proceedings in good faith and with the intention of resolving the dispute if at all possible within thirty (30) days of the notice from the party seeking to initiate the mediation procedures. If the dispute is not resolved within thirty (30) days, the parties are free to pursue arbitration.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees are required to participate in mediation before initiating arbitration proceedings, unless certain exceptions apply. This mediation process is intended to resolve disputes related to the franchise agreement, leases, financial arrangements, the franchisee-franchisor relationship, the franchisee's business, or any operational standards.
The mediation begins with a written "Notification of Dispute" from the party seeking mediation, which includes a detailed account of the facts, damages claimed, and requested relief. The other party must respond within 20 days, or 10 business days if the dispute involves a default notice. Both parties are then expected to try to resolve the dispute in good faith. If no resolution is reached within 20 days after the response, either party can initiate a formal mediation procedure through the American Arbitration Association (AAA). The mediation sessions will take place in Florida at a mutually agreed location, and key representatives from both sides must attend, with the option of legal counsel representation.
The mediation process aims for resolution within 30 days of the initial notice. If mediation fails or if the receiving party doesn't respond within five days or participate in the mediation, the initiating party can proceed to arbitration. The costs of the mediator are split equally, while each party covers their own expenses. All mediation details remain confidential and are treated as settlement negotiations. This structured mediation requirement reflects a common practice in franchising, where mediation is often used as a first step to resolve conflicts efficiently and maintain the franchise relationship before resorting to binding arbitration.