Who selects the mediator if C3 Wellness Spa and the franchisee cannot agree?
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
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, if the franchisee and C3 Wellness Spa cannot agree on a mediator, the American Arbitration Association (AAA) will select the mediator. This process is part of the non-binding mediation that both parties must undergo before initiating arbitration for any disputes related to the franchise agreement or relationship.
The mediation will be conducted according to the AAA's rules for commercial disputes and will take place in Osceola County, Florida, or the closest suitable location if a mediator isn't available there. The mediation must occur within 45 days of the AAA's mediator designation, unless both parties agree to a longer period in writing.
Both C3 Wellness Spa and the franchisee are responsible for their own mediation costs and will each pay 50% of the mediator's and the AAA's fees. However, C3 Wellness Spa has the option to bypass this mediation requirement for claims involving a breach of the agreement that could lead to injunctive relief or for claims related to the failure to pay fees or other monetary obligations.