If internal dispute resolution fails, does Baya Bar require mediation?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.2 Mediation. At Franchisor's option, any claim, controversy or dispute that is not resolved pursuant to Section 20.1 hereof shall be submitted to non-binding mediation. Franchisee shall provide Franchisor with written notice of
Franchisee's intent to pursue any unresolved claim, controversy or dispute, specifying in sufficient detail the nature thereof, prior to commencing any legal action. Franchisor shall have thirty (30) days following receipt of Franchisee's notice to exercise Franchisor's option to submit such claim, controversy or dispute to mediation. Mediation shall be conducted through a mediator or mediators in accordance with the American Arbitration Association Commercial Mediation Rules. Such mediation shall take place in the then-current location of Franchisor's corporate headquarters. The costs and expenses of mediation, including compensation and expenses of the mediator (and except for the attorneys' fees incurred by either party), shall be borne by the parties equally. Franchisor may specifically enforce Franchisor's rights to mediation, as set forth herein.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, mediation is not required. If internal dispute resolution fails, Baya Bar has the option to require mediation.
Specifically, if a claim, controversy, or dispute is not resolved through internal dispute resolution, Baya Bar has the option to submit the matter to non-binding mediation. To initiate this process, the franchisee must provide Baya Bar with written notice detailing the nature of the unresolved issue before commencing any legal action. Baya Bar then has 30 days to exercise its option to submit the dispute to mediation.
If Baya Bar chooses mediation, it will be conducted through a mediator in accordance with the American Arbitration Association Commercial Mediation Rules, and the mediation will take place at Baya Bar's corporate headquarters. The costs and expenses of mediation, excluding attorneys' fees, will be shared equally between the franchisee and Baya Bar. Baya Bar retains the right to specifically enforce its rights to mediation.