How long does an expert have to issue a decision in a dispute between Bevaris Alliance and a franchisee?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | Section 24 | If the parties have a dispute, the parties shall agree on the appointment of an expert, who shall issue a written decision and give notice of the decision to the parties within 90 days of the matter being referred to the expert. The expert’s decision shall be final and binding on the parties. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 17–18)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, if a dispute arises between the parties and they agree to appoint an expert, that expert is required to issue a written decision within a specific timeframe. The expert must provide this decision, along with notice to both parties, within 90 days from the date the matter was initially referred to them.
This 90-day period is significant for a prospective Bevaris Alliance franchisee because it sets a clear expectation for how quickly a dispute can be resolved through expert decision-making. Knowing that a decision will be made within this timeframe can provide reassurance and help in planning business operations, as it limits the period of uncertainty associated with the dispute.
Furthermore, the FDD states that the expert's decision is considered final and binding on both parties. This means that once the expert renders their decision, both Bevaris Alliance and the franchisee must abide by it, which can prevent prolonged legal battles and additional expenses. This aspect of the dispute resolution process can be particularly beneficial for franchisees who may not have the resources to engage in lengthy and costly litigation.
It is important for potential franchisees to carefully review Section 24 of the Franchise Agreement, as referenced in the FDD, to fully understand the scope and limitations of this dispute resolution process. While the expert's decision is binding, franchisees should be aware of their rights and obligations under the agreement and consult with legal counsel if necessary to ensure their interests are protected.