Under what authority will arbitration be conducted for Alloy disputes?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; or (iii) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
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.
Nothing in this Agreement bars either party's right to obtain injunctive relief against threatened conduct that will cause loss or damages to the other party, under the usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions. Furthermore, we and our affiliates have the right to commence a civil action against you or take other appropriate action for the following reasons: to collect sums of money due to us; to compel your compliance with trademark standards and requirements to protect the goodwill of the Trademarks; to compel you to compile and submit required reports to us; or to permit evaluations or audits authorized by this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, prior to any court action or arbitration, the parties involved must first attempt mediation. This mediation will be held in the county where Alloy's headquarters are located, which is currently Roswell, Georgia. The mediation will be non-binding and conducted by the American Arbitration Association, following its then-current rules for mediation of commercial disputes.
Before mediation, all parties must sign a standard confidentiality agreement designated by Alloy or the mediator. The mediator is disqualified from serving as a witness, expert, or counsel in any related disputes. The entire mediation process is confidential, and all communications are privileged under the governing law. The fees and expenses of the mediator will be shared equally by the parties involved.
For arbitration proceedings, the arbitrator must follow the law and cannot disregard the terms of the Franchise Agreement. The arbitrator must possess at least 5 years of significant experience in franchise law. The arbitration must be on an individual basis, and the arbitrator lacks the authority to proceed with any claim as a class action or consolidate claims with other proceedings involving third parties. If a court determines that the limitation on class action claims is unenforceable, the commitment to arbitrate becomes null and void, and all claims must be submitted to the jurisdiction of the courts.