What rules does the American Arbitration Association (AAA) use to conduct mediation for Casiola franchise disputes?
Casiola 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 AAA's then current rules for the mediation of commercial disputes. All mediation proceedings shall be conducted in Orange County, Florida or, if a mediator is not available in Orange County, Florida, then at a suitable location selected by the mediator that is located closest to Orange 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 AAA. Mediation shall be conducted within 45 days of 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 and 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 AAA's mediation fees.
Notwithstanding the preceding paragraph, Franchisor and Franchisee agree this Sub-Article 18.G.(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 including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement; 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 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, before either party can pursue arbitration for any dispute related to the Franchise Agreement or the franchise relationship, both the franchisee and franchisor must first attempt to resolve the issue through non-binding mediation. This mediation is to be conducted by the American Arbitration Association (AAA). The specific rules that the AAA uses are its "then current rules for the mediation of commercial disputes."
The mediation proceedings will take place in Orange County, Florida. If a mediator is unavailable there, the proceedings will occur at a location selected by the mediator closest to Orange County, Florida. A single mediator will conduct the mediation. If the Casiola franchisor and franchisee cannot agree on a mediator, the AAA will select one. The mediation must occur within 45 days of the AAA's designation or acknowledgment of the selected mediator, unless both parties agree to a longer period in writing.
Both the Casiola franchisor and franchisee are responsible for their own costs associated with the mediation. They will each pay 50% of the mediator's fee and the AAA's mediation fees. However, this requirement for non-binding mediation does not apply, at Casiola's election, to claims related to a breach of the agreement by the franchisee that would entitle Casiola to injunctive relief, including violations of Article 6 of the agreement, or to claims by either party related to the failure to pay fees or other monetary obligations under the agreement.