Where will mediation proceedings be conducted for Bang Cookies franchise disputes?
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' 2024 Franchise Disclosure Document, mediation proceedings will primarily take place in Bergen County, New Jersey. Specifically, before either party can initiate arbitration regarding disputes related to the Franchise Agreement or the franchise relationship, they must first engage in non-binding mediation. This mediation will be conducted following the American Arbitration Association's (AAA) rules for commercial disputes.
If a mediator is unavailable in Bergen County, the proceedings will occur at a location selected by the mediator that is closest to Bergen County, New Jersey. The mediation will be conducted by a single mediator, chosen either by mutual agreement between Bang Cookies and the franchisee or, if they cannot agree, by the AAA. The mediation must 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.
Both Bang Cookies and the franchisee are responsible for their own costs associated with the mediation. They will also each cover 50% of the mediator's fee and the AAA's mediation fees. This arrangement ensures that both parties share the financial burden of the mediation process. Franchisees should be aware of these location and cost implications when considering a Bang Cookies franchise, as they will be required to travel to Bergen County, New Jersey, or its vicinity, and share the mediation expenses.