What is the required intention of parties participating in Alloy mediation proceedings?

According to Alloy's 2025 Franchise Disclosure Document, parties participating in mediation proceedings are required to participate in good faith with the intention of resolving the dispute if at all possible. This resolution should occur within 30 days of the notice from the party seeking to initiate the mediation procedures.

This requirement means that if a dispute arises between an Alloy franchisee and the franchisor, both parties must make a genuine effort to find a resolution through mediation. Simply going through the motions without a sincere desire to resolve the issue would not fulfill this obligation. The intention is to foster a collaborative environment where both sides can explore potential compromises and solutions.

For a prospective Alloy franchisee, this clause offers a degree of protection and a structured process for resolving disagreements. It emphasizes that Alloy is committed to attempting to resolve disputes amicably before resorting to more adversarial and costly methods like arbitration or litigation. However, if mediation fails or one party refuses to participate, either party is then free to pursue arbitration.