For Bang Cookies, what is the definition of 'AAA' as it relates to mediation and arbitration?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
(2) Arbitration – Subject to the prerequisite requirements of non-binding mediation as set forth in Sub-Article 18.G.(1), and, except, at Franchisor's election, as to any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement, Franchisor and Franchisee agree that all disputes, controversies, and claims, arising from and/or related to this Agreement, the relationship between Franchisor and Franchisee, the System, and/or the validity of this Agreement and/or the Ancillary Agreements, shall be submitted, on demand of either Franchisor or Franchisee, to AAA for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with AAA's then current rules for commercial disputes, except as may be otherwise required in this Article 18.G. All arbitration proceedings shall be conducted in Bergen County, New Jersey or, if suitable AAA facilities are not available in Bergen County, New Jersey then at a suitable AAA location selected by the arbitrator that is located closest to Bergen County, New Jersey.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, 'AAA' refers to the American Arbitration Association. This organization is designated to handle binding arbitration for disputes arising from the Franchise Agreement.
Before initiating arbitration, both Bang Cookies and the franchisee must first attempt non-binding mediation through the AAA. This mediation will follow the AAA's rules for commercial disputes and will take place in Bergen County, New Jersey, or a location nearby selected by the mediator if AAA facilities are unavailable in Bergen County. If the parties cannot agree on a mediator, the AAA will select one. The mediation should occur within 45 days of the AAA's designation of the mediator, unless both parties agree to a longer period in writing. Each party is responsible for their own mediation costs and will split the mediator's and AAA's fees equally.
If mediation fails, either Bang Cookies or the franchisee can demand binding arbitration through the AAA. The arbitration will be conducted by a single arbitrator following the AAA's rules for commercial disputes, unless otherwise specified in the Franchise Agreement. The arbitration hearing must occur within 180 days of the arbitration demand. The arbitrator will provide written findings of fact and conclusions of law. The arbitrator can award any appropriate relief, including monetary damages, interest, specific performance, injunctive relief, and attorney's fees, unless restricted by the agreement. However, the arbitrator cannot declare the licensed marks to be generic or invalid.