What happens if the AAA Mediation Rules conflict with the All Team franchise agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Mediation. Before any party may bring an action in court for any controversy, dispute or claim between ATFC and USER arising from this Agreement or the franchise relationship, the parties must first have a conference with each other to try to resolve the dispute. If this fails to bring about a resolution, the dispute will first be submitted to non-binding mediation (the "Mediation") in Tampa, Florida unless the parties mutually agree to another location. The Mediation shall be conducted in accordance with then-current AAA mediation rules (the "AAA Mediation Rules") except to the extent the AAA Mediation Rules differ from the terms of this Agreement, in which event the terms of this Agreement shall be applied. Notwithstanding the foregoing, the mediation does not have to be conducted under the AAA. ATFC and USER will select the mediator. If the parties cannot agree on the selection of a mediator, the mediation shall be conducted through the AAA who will make the selection of mediator using their rules and guidelines. The cost of the Mediation, including the mediator's fee and expenses, shall be paid by the USER.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if there is a conflict between the AAA Mediation Rules and the terms of the franchise agreement, the terms of the franchise agreement will take precedence. This means that while All Team aims to follow the AAA Mediation Rules during dispute resolution, the specific stipulations outlined in the All Team franchise agreement will be the governing rules.
This is significant for a prospective All Team franchisee because it clarifies the hierarchy of rules during mediation. While the AAA Mediation Rules provide a standard framework, the All Team franchise agreement has the final say. Franchisees should carefully review the dispute resolution section of the franchise agreement to understand their rights and obligations during mediation.
It is also important to note that mediation does not have to be conducted under the AAA. All Team and the franchisee will select the mediator, and if they cannot agree, the AAA will select the mediator using their rules and guidelines. The franchisee is responsible for the costs of the mediation, including the mediator's fees and expenses. Understanding these details is crucial for any potential franchisee to be prepared for possible dispute resolution scenarios.