What is the deadline for Batteries Plus Bulbs and the franchisee to resolve a dispute through mediation before proceeding to arbitration?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise stated in this Section 19(A), the parties agree to submit any claim, controversy or dispute arising out of or relating to this Agreement (and attachments) or the relationship created by this Agreement to non-binding mediation before bringing such claim, controversy or dispute to arbitration or to a court.
The mediation will be conducted either through an individual mediator or a mediator appointed by a mediation services organization, experienced in the mediation of disputes between franchisors and franchisees, agreed upon by the parties.
If the parties do not agree upon a mediator or mediation services organization within fifteen (15) days after either party has notified the other of its desire to seek mediation, the dispute will be mediated by the American Arbitration Association pursuant to its rules governing mediation, at Franchisor's corporate headquarters in Hartland, Wisconsin.
The costs and expenses of mediation, including compensation of the mediator, will be borne equally by the parties.
If the parties cannot resolve the claim, controversy or dispute within ninety (90) days after conferring with the mediator, either party may submit such claim, controversy or dispute to arbitration under Section 19(B) below.
Either party may bring an action under the applicable provisions of this Section 19 without first submitting the action to mediation under this Section 19(A): (i) for monies owed, (ii) for injunctive relief, or (iii) involving the possession or disposition of, or other relief relating to, real property.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, if a claim, controversy, or dispute arises from the Franchise Agreement, both parties must first attempt to resolve it through non-binding mediation. This must occur before either party can proceed to arbitration or take the matter to court.
The mediation process involves a mutually agreed-upon mediator or mediation services organization experienced in franchise disputes. If both parties cannot agree on a mediator within fifteen days after one party expresses the desire for mediation, the American Arbitration Association will appoint a mediator, and the mediation will take place at Batteries Plus Bulbs's headquarters in Hartland, Wisconsin. The costs and expenses of mediation, including the mediator's compensation, will be split equally between Batteries Plus Bulbs and the franchisee.
If mediation does not successfully resolve the dispute, either party can submit the claim to arbitration. However, this can only occur if the parties cannot resolve the issue within ninety days after initially conferring with the mediator. There are exceptions where either party can bring an action without first submitting to mediation, including actions for monies owed, injunctive relief, or those involving real property.