Under the Beem Light Sauna agreement, what is the deadline for holding mediation after a dispute arises?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 Mandatory Pre-Litigation Mediation. Except as otherwise provided in this Section, prior to filing any proceeding to resolve any dispute based upon, arising out of, or in any way connected with this Agreement, a party must submit the dispute for mediation.
- (a) Conduct of Mediation. All parties must attend and participate in the mediation. It is the intent of the parties that mediation shall be held not later than 14 days after a
written request for mediation shall have been served on the other parties. The mediation will be held before one mediator selected by the parties, and if the parties cannot agree upon the mediator, then a mediator selected by the American Arbitration Association ("AAA"). The mediation shall not last more than one day and shall be held in the metropolitan area of our thencurrent principal place of business. The mediation shall be governed by the rules of the AAA.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, if a dispute arises related to the franchise agreement, both parties are required to participate in mediation before initiating any legal proceedings. The mediation should occur no later than 14 days after a written request for mediation has been served to the other party.
The mediation will involve a single mediator selected jointly by both parties. However, if an agreement on the mediator cannot be reached, the American Arbitration Association (AAA) will appoint one. The mediation itself is limited to a single day and will take place in the metropolitan area of Beem Light Sauna's principal place of business at the time. The rules of the AAA will govern the mediation process.
This mandatory pre-litigation mediation clause means that prospective Beem Light Sauna franchisees must be prepared to engage in a relatively quick mediation process to resolve disputes. The short 14-day timeframe to begin mediation could put pressure on franchisees to quickly prepare their case. The location of the mediation, near Beem Light Sauna's headquarters, may also present a logistical or financial burden for franchisees located further away. Franchisees should also familiarize themselves with the AAA's mediation rules to understand the process.