Where will mediation take place for a Baya Bar franchise dispute?
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, if a dispute arises that cannot be resolved internally, Baya Bar has the option to submit the matter to non-binding mediation. Should Baya Bar choose this option, the mediation will be conducted following the American Arbitration Association Commercial Mediation Rules. The location for this mediation will be at the then-current location of Baya Bar's corporate headquarters. Currently, the principal place of business for Baya Bar is listed as 2343 Hylan Boulevard, Staten Island, New York 10306.
For a prospective franchisee, this means that if a dispute arises with Baya Bar and mediation is pursued, they will likely need to travel to Staten Island, New York, regardless of where their franchise is located. This could involve significant travel expenses and time. Franchisees should factor these potential costs into their assessment of the franchise opportunity.
The costs and expenses of mediation, excluding attorneys' fees, will be shared equally between Baya Bar and the franchisee. This arrangement is fairly standard in franchise agreements, as it ensures both parties have a vested interest in reaching a resolution during mediation. However, franchisees should be prepared to cover their share of the mediator's fees and other associated costs, in addition to their own legal representation.
It is important to note that mediation is not mandatory unless Baya Bar elects to use it. Baya Bar retains the right to enforce its rights to mediation. Franchisees should be aware of this clause and understand the implications of potentially having to mediate disputes in New York.