What is the geographic location for mediation proceedings related to a Bath Tune Up franchise dispute?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) All mediation proceedings will take place in Brown County, South Dakota, or if Franchisor so elects, in the county where the principal place of business of Franchisee is then located. The fees of the mediator will be borne equally by Franchisor and Franchisee, and all other expenses relating to the mediation will be borne by the party incurring them.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, mediation proceedings will take place in Brown County, South Dakota. However, Bath Tune Up has the option to elect that the mediation occur in the county where the franchisee's principal place of business is located. The franchisee and Bath Tune Up will equally share the fees of the mediator. All other expenses that relate to the mediation will be the responsibility of the party that incurs them.
This means that a Bath Tune Up franchisee could be required to travel to Brown County, South Dakota for mediation, or, if the franchisor elects, mediation could occur in the county where the franchisee's business is located. This could significantly impact the franchisee's travel costs and time commitment depending on their location.
It is fairly common in franchising for the location of mediation or arbitration to be specified in the franchise agreement, often favoring the franchisor's location. A prospective Bath Tune Up franchisee should consider the potential costs and inconvenience of traveling to South Dakota for mediation, or potentially negotiating this clause during the franchise agreement process.