Who selects the mediator for disputes involving All Team?

According to All Team's 2025 Franchise Disclosure Document, in the event of a dispute, All Team and the franchisee will jointly select the mediator. However, if both parties cannot agree on a mediator, the selection will be made by the American Arbitration Association (AAA) according to their rules and guidelines. The franchisee is responsible for covering the costs of the mediation, including the mediator's fees and expenses. This mediation process is a prerequisite before either party can initiate a lawsuit in court. This means that franchisees need to budget for these potential mediation expenses and understand the implications of the AAA's involvement if an agreement on a mediator cannot be reached directly with All Team.

This requirement for mediation before litigation is a fairly standard practice in franchising, intended to provide a less costly and more efficient means of resolving disputes. The fact that the franchisee bears the cost of mediation is not uncommon, but it is something to consider when evaluating the overall financial implications of the franchise agreement. The confidentiality of the mediation proceedings is also typical, ensuring that settlement discussions remain private and cannot be used against either party in future legal proceedings.

For a prospective All Team franchisee, it's important to understand the potential costs associated with dispute resolution and to factor this into their financial planning. Furthermore, understanding the rules and guidelines of the AAA, which would govern the mediator selection process if the parties cannot agree, is crucial. Franchisees should also be aware that failure to engage in mediation before starting litigation or arbitration could result in the dismissal of their case, emphasizing the importance of adhering to the outlined dispute resolution process.