What happens if mediation fails to resolve the Alloy dispute within 30 days?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties agree to participate in the mediation proceedings in good faith with the intention of resolving the dispute if at all possible within 30 days of the notice from the party seeking to initiate the mediation procedures.
If not resolved within 30 days, or if one party refuses to participate in mediation as outlined herein, the parties are free to pursue arbitration.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if mediation does not resolve a dispute within 30 days of notice from the party seeking mediation, or if one party refuses to participate in mediation, either party is then free to pursue binding arbitration. This initial mediation step is required before either party can file for arbitration, unless the dispute involves injunctive relief or specific performance actions.
The mediation process itself will be held in the county where Alloy's headquarters are located, which is currently Roswell, Georgia, unless both parties agree to another location. Both parties must send people authorized to settle the dispute to any mediation session. The parties will split the costs of mediation equally.
Following unsuccessful mediation, any dispute must be submitted to binding arbitration under the Federal Arbitration Act, administered by the American Arbitration Association according to its commercial arbitration rules. This means a neutral arbitrator will make a final decision that both Alloy and the franchisee must legally abide by, limiting options for further legal challenges.