What condition must be met for a party to seek mediation with Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Before any party may bring an action in court or against the other, or commence an arbitration proceeding (except as noted below), the parties must first meet to mediate the dispute. Specifically, no litigation or arbitration action may be commenced until the earlier of thirty (30) days from written notice by one party to the other of a request to initiate mediation, or the mutual agreement by both parties that mediation has been unsuccessful if the notified party fails to respond to the requesting party within thirty (30) days of notification. The mediation will be held in the county where our headquarters are then located (currently, Roswell, Georgia). Any such mediation will be non-binding and conducted by the American Arbitration Association in accordance with its then-current rules for mediation of commercial disputes. Prior to the mediation, each party involved in the mediation must sign the standard confidentiality agreement designated by us or the
mediator. The mediator will be disqualified as a witness, expert or counsel for any party with respect to the dispute or any related matter. Mediation is a compromise negotiation and will constitute privileged communications under the law governing this Agreement. The entire mediation process will be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and the parties will not be discoverable or admissible in any legal proceeding for any purposes; provided, however, that evidence which is otherwise discoverable or admissible will not be excluded from discovery or admission as a result of its use in the mediation. The parties will share equally all fees and expenses of the mediator.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, before a franchisee or Alloy can initiate a lawsuit or arbitration against the other, they must first attempt to mediate the dispute. This mediation process is a mandatory prerequisite to formal legal action.
Specifically, neither party can commence litigation or arbitration until at least 30 days have passed since one party provided written notice to the other, requesting the initiation of mediation. Alternatively, if both parties mutually agree that mediation has been unsuccessful before the 30-day period expires, they can proceed with legal action sooner. If the notified party does not respond to the request for mediation within 30 days, the requesting party can proceed with litigation or arbitration.
The mediation itself will take place in the county where Alloy's headquarters are located, which is currently Roswell, Georgia. The mediation will be non-binding and will be conducted according to the American Arbitration Association's rules for commercial disputes. Both parties must sign a confidentiality agreement, and the mediator's role is limited to facilitating discussion without being available as a witness or expert in any subsequent legal proceedings. The costs of the mediator are to be shared equally between the parties.