Unless otherwise agreed, where will the mediation take place for disputes involving All Team?
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.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, mediation for disputes between All Team and a franchisee will take place in Tampa, Florida, unless both parties agree to another location. This mediation is non-binding and must occur before either party can initiate a court action related to the franchise agreement or relationship.
The mediation process will follow the American Arbitration Association (AAA) mediation rules, but if those rules conflict with the franchise agreement, the agreement's terms will take precedence. The parties will jointly select a mediator; if they cannot agree, the AAA will appoint one according to its rules. The franchisee is responsible for covering the costs of the mediation, including the mediator's fees and expenses.
All negotiations and discussions during mediation are confidential and treated as settlement negotiations, inadmissible in any subsequent court or arbitration proceedings. The mediator cannot be called as a witness in such proceedings. Failure to participate in mediation before starting litigation or arbitration can result in dismissal of those proceedings. This clause ensures that disputes are first attempted to be resolved through mediation before escalating to more formal and costly legal processes.