Before commencing arbitration against Bonchon, what must a party do?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) A party must notify the other party of its intent to commence arbitration prior to commencing arbitration. The notice must specify the date on which the arbitration demand is intended to be filed, which must be at least 30 days after the date of the notice. During this time period, the parties will meet for the purpose of resolving the dispute prior to commencing arbitration.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, before starting an arbitration proceeding, a party must first notify the other party of their intention to do so. This notification must include the planned date for filing the arbitration demand, which must be at least 30 days after the notification date.
During this 30-day period, both parties are required to meet and attempt to resolve the dispute before proceeding with arbitration. This initial step is designed to encourage resolution through discussion and negotiation, potentially avoiding the more formal and costly process of arbitration.
If the dispute remains unresolved after this period, either party can then commence arbitration by submitting a written demand to the American Arbitration Association and the other party. This demand must clearly state the subject of the dispute and the specific relief being sought. This pre-arbitration procedure is a common practice in franchising, aimed at promoting efficient dispute resolution and potentially saving both parties time and expenses.