What is the deadline for conducting mediation after the mediator's designation for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
(1) Non-Binding Mediation – Franchisee and Franchisor agree that before either party may bring any action, dispute and/or controversy arising from or related to this Agreement and/or the franchise relationship between Franchisor and Franchisee in arbitration, the parties must first mediate the dispute through non-binding mediation. Mediation shall be non-binding and shall be conducted by the American Arbitration Association ("AAA") in accordance with the AAA's then current rules for the mediation of commercial disputes. All mediation proceedings shall be conducted in Osceola County, Florida or, if a mediator is not available in Osceola County, Florida then at a suitable location selected by the mediator that is located closest to Osceola County, Florida. Mediation shall be conducted by one mediator and if Franchisor and Franchisee cannot agree on a mediator then the mediator shall be selected by the AAA. Mediation shall be conducted within 45 days of the AAA's designation and/or acknowledgment of the selected mediator or such longer period as may be agreed to between Franchisor and Franchisee in writing signed by each respective party. Franchisor and Franchisee shall each be responsible for their own costs associated with mediation and Franchisor and Franchisee shall each be responsible for and shall each pay 50% of the mediator's fee and the AAA's mediation fees.
Notwithstanding the preceding paragraph, Franchisor and Franchisee agree this Sub-Section 7.6(1) and, thereby, the prerequisite requirement of non-binding mediation, shall not, at Franchisor's election, apply to: (a) any claims or disputes related to or concerning a breach of
this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief; and/or (b) claims by either Franchisor or Franchisee under this Agreement that relates to either Franchisor's or Franchisee's failure to pay fees or other monetary obligations due under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, if a dispute arises between the franchisee and franchisor, both parties must first attempt to resolve it through non-binding mediation before proceeding to arbitration. This mediation is to be conducted by the American Arbitration Association (AAA) following their commercial dispute mediation rules.
The FDD specifies that mediation must occur within 45 days of the AAA designating or acknowledging the selected mediator. However, this timeframe can be extended if both C3 Wellness Spa and the franchisee agree to a longer period in writing. The mediation proceedings will take place in Osceola County, Florida, or, if a mediator isn't available there, at a location selected by the mediator that is closest to Osceola County, Florida.
Both C3 Wellness Spa and the franchisee are responsible for their own mediation costs. They will also each cover 50% of the mediator's fee and the AAA's mediation fees. It's important to note that C3 Wellness Spa has the option to bypass this mediation requirement for claims involving breaches that could lead to injunctive relief or claims related to the failure to pay fees or other monetary obligations under the agreement.