Where must mediation take place for claims against All States M.E.D.?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, if a franchisee has a claim against All States M.E.D., the franchisee must first attempt to resolve it through mediation for 60 days before pursuing legal action. This mediation must occur in the city or county where All States M.E.D.'s headquarters is located. The FDD states that if the parties cannot agree on a mediator, they will use the American Arbitration Association (AAA) and split the AAA and mediator fees equally.

This requirement means that a franchisee may need to travel to the location of All States M.E.D.'s headquarters for mediation, potentially incurring travel and accommodation costs. It also implies that the franchisee will be subject to the laws and mediation practices of the jurisdiction where All States M.E.D.'s headquarters is located.

It is important to note that the Rhode Island Addendum modifies Item 17.m of the Disclosure Document, stating that the Rhode Island Franchise Investment Act prohibits restrictions on the choice of jurisdiction or venue for franchisees governed under Rhode Island law. Additionally, for North Dakota franchisees, Item 17(u) is modified to provide that the site of mediation and arbitration shall be agreeable to all parties and may not be remote from the franchisee's place of business. Therefore, the standard mediation location may not apply to franchisees in Rhode Island and North Dakota.

Prospective franchisees should consider these dispute resolution procedures carefully, as they can significantly impact the cost and convenience of resolving any potential disputes with All States M.E.D.