To whom must an All States M.E.D. franchisee first bring any claim for internal dispute resolution?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, a franchisee must first bring any claim to the company's CEO as part of the internal dispute resolution process. This requirement is a condition that must be met before the franchisee can take the claim to a third party. The franchisee must also provide notice of the claim 30 days after the occurrence of the violation or breach. Failure to provide timely notice will preclude any claim for damages.

This initial step of bringing the claim to the CEO is intended to allow All States M.E.D. an opportunity to address the issue internally and potentially resolve it without resorting to external legal proceedings. It reflects a common practice in franchising where franchisors seek to maintain control over dispute resolution and attempt to find amicable solutions before more formal and costly processes are initiated.

After exhausting the internal dispute resolution procedure with the CEO, the franchisee is then required to attempt mediation for 60 days before pursuing legal action. This involves trying to resolve the claim with a mutually agreed-upon mediator in the city or county where All States M.E.D.'s headquarters are located. If a mediator cannot be agreed upon, the American Arbitration Association (AAA) services will be used, with the costs split equally between the franchisee and All States M.E.D.