What rules govern the mediation process for disputes related to the Amorino Franchise Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Mediation. In the event of any dispute arising out of or in connection with this Agreement or the relationship of the parties hereto, including without limitation any claim related to termination or expiration of this Agreement and any claim for damages and/or compensation related thereto, the parties agree to submit the matter to mediation under the American Arbitration Association Commercial Mediation Rules. The mediation shall be conducted by one (1) mediator and shall take place not more than forty-five (45) days following the filing of a request for mediation in New York County, New York. The parties or their principals must personally attend and participate for a minimum of three (3) hours. This obligation to mediate shall not apply to non-curable defaults by you.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if a dispute arises from the Franchise Agreement or the relationship between the parties, including claims related to termination, expiration, or damages, both parties must submit to mediation under the American Arbitration Association (AAA) Commercial Mediation Rules. The mediation will be conducted by a single mediator and must occur within 45 days of filing a mediation request in New York County, New York.
The Amorino franchisee and franchisor, or their principals, are required to personally attend and participate in the mediation for at least three hours. This mandatory mediation does not apply to non-curable defaults by the franchisee.
This mediation clause is fairly standard in franchise agreements, requiring an attempt to resolve disputes amicably before resorting to more costly and time-consuming litigation or arbitration. The requirement for personal attendance underscores the importance Amorino places on direct engagement in resolving conflicts. However, the exception for 'non-curable defaults' means that Amorino can bypass mediation in cases where the franchisee's breach of contract is severe and cannot be remedied.