Where will mediation be conducted for disputes involving 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 can initiate a lawsuit or arbitration against Alloy, both parties must first attempt to mediate the dispute. The mediation will take place in the county where Alloy's headquarters is located, which is currently Roswell, Georgia.
The FDD specifies that no legal action can commence until at least 30 days after one party sends written notice to the other, requesting mediation. This 30-day period allows the notified party time to respond. If the notified party doesn't respond within 30 days, or if both parties agree that mediation has failed, then legal action can proceed.
The mediation itself will be non-binding and will be conducted by the American Arbitration Association, following its rules for commercial disputes. Both Alloy and the franchisee must sign a standard confidentiality agreement before the mediation begins. The costs and expenses of the mediator will be shared equally between the parties. This process aims to facilitate a compromise and maintain confidentiality, as the mediator's conduct and opinions are not admissible in any legal proceeding.