Who is responsible for their own costs associated with mediation for C3 Wellness Spa?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, in the event that mediation is required before either party can pursue arbitration regarding disputes related to the franchise agreement, both the franchisee and franchisor are responsible for their own costs.
In addition to covering their own costs, the C3 Wellness Spa franchisee and franchisor will each pay 50% of the mediator's fee and the American Arbitration Association's (AAA) mediation fees. The mediation will be non-binding and conducted by the AAA, following its rules for commercial dispute mediation. Unless otherwise agreed, the mediation proceedings will occur in Osceola County, Florida, or the closest suitable location if a mediator isn't available there.
It's important to note that C3 Wellness Spa can elect to bypass the mediation requirement for claims involving a breach of the agreement by the franchisee that could entitle C3 Wellness Spa to injunctive relief, or for claims related to the failure to pay fees or other monetary obligations under the agreement.