Where will mediation proceedings be conducted for disputes related to the C3 Wellness Spa franchise agreement?
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.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, mediation proceedings will primarily take place in Osceola County, Florida. Specifically, the FDD states that mediation will be conducted by the American Arbitration Association (AAA) following its rules for commercial disputes.
If a mediator is unavailable in Osceola County, the proceedings will be held at a location selected by the mediator that is closest to Osceola County, Florida. This ensures that even if a local mediator cannot be found, the mediation remains geographically convenient to the primary location.
Both the franchisee and C3 Wellness Spa are responsible for their own mediation costs. They will each pay 50% of the mediator's fee and the AAA's mediation fees. This cost-sharing arrangement is a common practice in franchising, intended to ensure both parties are invested in the mediation process and to promote a fair resolution. Mediation must occur within 45 days of the AAA's designation of the mediator, unless both parties agree to a longer period in writing.