Where will the required mediation take place for a Beverly Anns Cookie franchise dispute?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for any "Litigation Exceptions" as defined below, without limiting our Termination Rights, all claims or disputes between you and us or our affiliates arising out of, or in any way relating to, this Franchise Agreement, or any of the parties' respective rights and obligations arising out of this Franchise Agreement, shall be submitted first to non-binding mediation ("Required Mediation") prior to a hearing in binding arbitration. Before commencing any mediation against us or our affiliates with respect to any such claim or dispute, you must submit a notice to us, which specifies, in detail, the precise nature and grounds of such claim or dispute. Such mediation shall take place in the city closest to our principal place of business (currently Florence, Kentucky) under the auspices of the American Arbitration Association ("AAA"), or other mediation service acceptable to us in our sole discretion, in accordance with AAA's Commercial Mediation Procedures then in effect. Such mediation shall be concluded within 60 days of the issuance of your request, or such longer period as we may agree upon. You may not commence any action against us or our affiliates with respect to any such claim unless mediation proceedings have been terminated either: (i) as the result of a written declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as a result of a written declaration by us. The parties shall each bear their own costs of mediation and shall share equally the filing fee imposed by AAA and the mediator's fees. We reserve the right to specifically enforce our right to mediation.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, any required mediation will take place in the city closest to their principal place of business, which is currently Florence, Kentucky. The mediation will be conducted under the auspices of the American Arbitration Association (AAA), or another mediation service acceptable to Beverly Ann's Cookie, following AAA's Commercial Mediation Procedures.
Before starting mediation against Beverly Anns Cookie, a franchisee must provide a detailed notice specifying the nature and grounds of the claim or dispute. The mediation should be concluded within 60 days of the request, unless Beverly Anns Cookie agrees to a longer period. A franchisee cannot take action against Beverly Anns Cookie until the mediation proceedings are terminated, either by a written declaration from the mediator that further efforts are not worthwhile or by a written declaration from Beverly Anns Cookie.
Each party is responsible for their own mediation costs and will share equally the filing fee imposed by the AAA and the mediator's fees. Beverly Anns Cookie retains the right to specifically enforce their right to mediation. This means that Beverly Anns Cookie can compel a franchisee to participate in mediation before pursuing other legal avenues, which is a common practice in franchising to attempt to resolve disputes efficiently and amicably.
This requirement for mediation in Florence, Kentucky, has practical implications for franchisees, potentially increasing their costs if they are located far from Kentucky. Franchisees should factor in potential travel and legal costs associated with mediation when evaluating the franchise opportunity. The FDD emphasizes the importance of attempting to resolve disputes through mediation before resorting to arbitration, highlighting the franchisor's preference for non-binding dispute resolution methods.