What must All Team and the franchisee do if mediation fails to resolve the dispute?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence, and shall not be admissible or otherwise used in connection with any court or arbitration proceeding for any purpose. The mediator may not be called as a witness in any court or arbitration proceeding for any purpose. If the parties, after a good faith effort to settle the dispute using Mediation, are unable to reach settlement, ATFC and FRANCHISEE agree that the dispute will be resolved according to the Sections below. Failure to submit the dispute to Mediation prior to commencing any litigation or arbitration proceeding shall be grounds for dismissal of the litigation or arbitration proceedings.
Notwithstanding the foregoing, the obligation of this Section to mediate will not be binding with respect to claims brought by ATFC and relating to ATFC's trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties.
B. Litigation. Except as otherwise provided in this Agreement, all controversies, disputes or claims between ATFC and FRANCHISEE arising from this Agreement or the franchise relationship set forth in this Agreement shall be filed in the Federal District Court in Tampa, FL when the grounds set forth in 28 U.S.C.§ 1332 are present. Both parties and each guarantor of this Agreement irrevocably submit to the jurisdiction of this court and waive any objection to the jurisdiction or venue in this court. In the event that the above-referenced federal court does not have jurisdiction over the dispute, the parties shall submit to binding arbitration as provided below.
Notwithstanding the foregoing, any claims ATFC has relating to its trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties shall be brought in either federal or state courts in Tampa, FL. Both parties agree to submit to the jurisdiction of the state and federal court in Tampa, FL.
C. Arbitration. In the event that the federal court described above does not have subject matter jurisdiction over the dispute, the parties, subject to all other provisions above, will submit the dispute to binding arbitration conducted in Tampa, FL (unless the parties mutually agree otherwise).
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if mediation fails to resolve a dispute, All Team and the franchisee must resolve the dispute through litigation or arbitration, depending on the circumstances. Except as otherwise provided in the franchise agreement, all disputes between All Team and the franchisee will be filed in the Federal District Court in Tampa, FL, if the requirements of 28 U.S.C.§ 1332 are met. Both parties must submit to the jurisdiction of this court and waive any objection to jurisdiction or venue. If the federal court does not have jurisdiction, the parties will submit to binding arbitration.
However, All Team has the option to bring certain claims, such as those relating to trademarks, service marks, patents, or copyrights, claims relating to any lease or sublease of any real property between the parties, or requests for injunctive relief, in either federal or state courts in Tampa, FL. Both parties agree to submit to the jurisdiction of these courts for these specific types of claims.
If the parties proceed to binding arbitration, it will be conducted in Tampa, FL, unless both parties agree otherwise. The arbitration will follow the American Arbitration Association (AAA) Rules, unless those rules conflict with the franchise agreement, in which case the agreement terms will prevail. The arbitrator must be mutually selected by the parties and have at least 5 years of experience in franchise law. Each party is limited to 25 document requests, 15 interrogatories, and 1 deposition, unless otherwise agreed. Any claim that would constitute a compulsory counterclaim must be submitted or filed in the same proceeding as the original claim, or it will be barred.