Does the All States M.E.D. Franchise Agreement require franchisees to mediate claims against the franchisor?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| u. Dispute Resolution by Arbitration or Mediation | FA: Section 23.9; Schedules 2 and 3 | You must mediate and arbitrate claims against us (subject to applicable state law). |
|---|---|---|
| v. Choice of Forum | FA: Section 23.2; Schedules 2 and 3 | Any mediation, litigation or arbitration must be pursued where our headquarters are located (subject to applicable state law). |
| w. Choice of Law | FA: Section 23.1; Schedules 2 and 3 | Except as to claims governed by federal law, the law of the state where we are headquartered applies (subject to applicable state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–39)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Franchise Agreement mandates that franchisees must first attempt to resolve disputes with the company through mediation before pursuing other legal avenues. Specifically, franchisees are required to mediate and arbitrate claims against All States M.E.D., although this is subject to applicable state law. This requirement is found in Section 23.9 and Schedules 2 and 3 of the Franchise Agreement.
This mediation requirement means that if a franchisee has a dispute with All States M.E.D., such as a disagreement over fees, support, or territory rights, they must engage in a formal mediation process. Mediation typically involves a neutral third party who helps facilitate a discussion between the franchisee and All States M.E.D. in an attempt to reach a mutually agreeable resolution. While mediation is not binding, it is a necessary step before arbitration or litigation.
Furthermore, any mediation, litigation, or arbitration must be pursued where All States M.E.D.'s headquarters are located, as stated in Section 23.2 and Schedules 2 and 3 of the Franchise Agreement. This could mean added expenses for the franchisee, depending on their location. The Franchise Agreement also specifies that, except for claims governed by federal law, the law of the state where All States M.E.D. is headquartered will apply, subject to applicable state law, as detailed in Section 23.1 and Schedules 2 and 3.