Who is responsible for selecting the mediator in a dispute between Black Bear Diner and the franchisee?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Mediation. If the dispute remains unresolved after the face-to-face meeting, the parties agree to submit the dispute to non-binding mediation conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association ("AAA"), unless the parties agree on alternative rules. The mediator must be a neutral person agreed upon by the parties and experienced in franchising. Any party may be represented by counsel and persons authorized to settle the dispute must attend any mediation session. The fees and expenses of the mediator shall be shared equally by the parties. The entire mediation process shall be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and the parties shall not be discoverable or admissible in any legal proceeding for any purpose; provided, however, that evidence which is otherwise discoverable or admissible shall not be excluded from discovery or admission as a result of its use in the mediation. The parties agree to participate in the mediation proceedings in good faith with the intention of resolving the dispute if at all possible within 30 days of the notice from the party seeking to initiate the mediation procedures.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, in the event of a dispute between the franchisor and a franchisee, both parties must agree on a neutral mediator who is experienced in franchising. If a face-to-face meeting does not resolve the issue, the dispute will proceed to non-binding mediation following the Commercial Mediation Rules of the American Arbitration Association (AAA), unless both parties agree to use alternative rules.
Both the franchisee and Black Bear Diner have the right to be represented by counsel during mediation, and individuals authorized to settle the dispute must be present at the mediation sessions. The costs associated with the mediator are to be shared equally between the parties.
The mediation process is to remain confidential, ensuring that the conduct, statements, offers, and opinions of both the mediator and the parties involved are not disclosed or used in any legal proceedings. However, any evidence that is otherwise admissible will not be excluded simply because it was used during the mediation. Both parties are expected to participate in the mediation in good faith, with the aim of resolving the dispute within 30 days of initiating the mediation procedures.