What rules govern the mediation process for All Team disputes?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Mediation. Before any party may bring an action in court for any controversy, dispute or claim between ATFC and FRANCHISEE arising from this Agreement or the franchise relationship set forth in this Agreement, 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 FRANCHISEE 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 FRANCHISEE. All negotiations and mediation proceedings (including without limitation, discovery conducted therein, as well as all statements and settlement offers made by either party or the mediator in connection with the Mediation) shall be strictly confidential, shall be considered as compromise and 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.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, before a franchisee can take legal action against All Team Franchise Corporation (ATFC), both parties must first try to resolve the issue through a conference. If that doesn't work, the dispute must go to non-binding mediation in Tampa, Florida, unless both parties agree to a different location. This mediation follows the American Arbitration Association (AAA) mediation rules, but if those rules clash with the franchise agreement, the agreement takes precedence. However, mediation doesn't necessarily have to be conducted under the AAA.
The franchisee bears the cost of the mediation, including the mediator's fees and expenses. All discussions and offers made during mediation are confidential and treated as settlement negotiations, meaning they can't be used in court or arbitration. The mediator cannot be called as a witness in any legal proceeding. If mediation fails, the parties can then move forward with other dispute resolution methods. Failing to participate in mediation before starting litigation or arbitration can result in dismissal of those proceedings.
However, the requirement to mediate does not apply to claims All Team brings related to its trademarks, service marks, patents, or copyrights, including the Marks; claims related to any lease or sublease of real property between the parties; or requests by All Team 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. This means All Team can immediately pursue legal action in these specific cases without first going through mediation.