What is the process for selecting an arbitrator for a Burneys Sweets More dispute?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Mediation; Arbitration.
(i) Mediation. Before Franchisee (or any of its Owners, guarantors, or affiliates) and Franchisor (or its affiliates) may bring an Action against the other, the parties must first meet to mediate the Act (except as otherwise provided below). Any such mediation shall be non-binding. Mediation shall be (i) conducted by a mediator mutually agreeable to the parties who has franchise law experience, (ii) conducted in accordance with the American Arbitration Association rules for mediation of commercial disputes and (iii) held in the city of Franchisor's then-current principal place of business (currently Elizabethtown, NC). Nevertheless, the parties may mutually agree on a mediator, venue, and/or procedures for mediation. The mediation shall be commenced by the party requesting mediation ("complainant") providing written notice of the request for mediation ("request") to the party with whom mediation is sought ("respondent"). The request shall specify with reasonable particularity the matter or matters on which
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Burneys Sweets More Franchise Disclosure Document, before a franchisee or Burneys Sweets More can take legal action against the other, they must first attempt to mediate the dispute. The mediation is non-binding and should follow specific guidelines.
The mediation must be conducted by a mediator who is mutually agreed upon by both parties and has experience in franchise law. The mediation process should adhere to the American Arbitration Association rules for mediating commercial disputes. The location for the mediation is set in the city where Burneys Sweets More's principal place of business is located, which is currently Elizabethtown, NC, unless both parties agree to a different location.
The party initiating the mediation (the complainant) must provide written notice to the other party (the respondent), detailing the specific issues to be mediated. The respondent then has 30 days to respond in writing. If the parties cannot resolve the dispute through mediation within 60 days after the respondent's answer, or if the respondent fails to answer within 30 days, the complainant can then proceed with an action in court or other dispute resolution methods.
The FDD does not specify the process for selecting an arbitrator, only a mediator. Therefore, prospective franchisees should inquire with Burneys Sweets More about the arbitration process, including how an arbitrator is selected if mediation fails and arbitration is pursued.