After mediation, what is the next step in resolving disputes related to the Bang Cookies franchise agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
(1) Non-Binding Mediation – Franchisee and Franchisor agree that before either party may bring any action, dispute and/or controversy arising from or related to this Agreement and/or the franchise relationship between Franchisor and Franchisee in arbitration, the parties must first mediate the dispute through non-binding mediation. Mediation shall be non-binding and shall be conducted by the American Arbitration Association ("AAA") in accordance with the AAA's then current rules for the mediation of commercial disputes. All mediation proceedings shall be conducted in Bergen County, New Jersey or, if a mediator is not available in Bergen County, New Jersey then at a suitable location selected by the mediator that is located closest to Bergen County, New Jersey. Mediation shall be conducted by one mediator and if Franchisor and Franchise cannot agree on a mediator then the mediator shall be selected by AAA. Mediation shall be conducted within 45 days of AAA's designation and/or acknowledgment of the selected mediator or such longer period as may be agreed to between Franchisor and Franchisee in writing and signed by each respective party. Franchisor and Franchisee shall each be responsible for their own costs associated with mediation and Franchisor and Franchisee shall each be responsible for and shall each pay 50% of the mediator's fee and AAA's mediation fees.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the next step in resolving disputes after non-binding mediation is binding arbitration. Specifically, before either party can initiate any action, dispute, or controversy related to the Franchise Agreement or the franchise relationship in arbitration, they must first attempt to resolve the issue through non-binding mediation.
The mediation process is to be conducted by the American Arbitration Association (AAA) following its rules for commercial disputes. The location for mediation is set in Bergen County, New Jersey, or if a mediator isn't available there, at a location closest to Bergen County selected by the mediator. A single mediator will preside, chosen either by mutual agreement between Bang Cookies and the franchisee or by the AAA if they cannot agree.
This mediation should occur within 45 days of the AAA's designation or acknowledgment of the selected 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. After mediation, the parties would proceed to binding arbitration to resolve the dispute.