Where will mediation take place for Baya Bar franchise disputes?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.2 Mediation. At Franchisor's option, any claim, controversy or dispute that is not resolved pursuant to Section 10.1 hereof shall be submitted to non-binding mediation. Developer shall provide Franchisor with written notice of Developer'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 Developer'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 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, mediation for unresolved disputes will occur at the location of Baya Bar's corporate headquarters at the time of the mediation. Before pursuing any legal action, a franchisee must first provide Baya Bar with written notice detailing the nature of the dispute. Baya Bar then has 30 days to decide whether to submit the issue to mediation.
The mediation process will be conducted following the American Arbitration Association Commercial Mediation Rules, utilizing one or more mediators. The costs and expenses associated with the mediation, excluding attorneys' fees, will be equally shared between Baya Bar and the franchisee.
It is important to note that Baya Bar retains the right to specifically enforce mediation. This means that Baya Bar can legally compel a franchisee to participate in mediation as outlined in the franchise agreement. Franchisees should be aware of this clause and understand the implications of engaging in mediation at Baya Bar's corporate headquarters, potentially incurring travel and related expenses.