What happens if the Chatime parties agree upon a different location for the mediation?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 Mediation. If the parties cannot resolve their Dispute within 30 days from the date of service of the Notice of Dispute, either party may refer the matter to a mediator and if the parties cannot agree upon the appointment of a mediator, either party may submit the matter to the American Arbitration Association ("AAA") and obtain the appointment of a mediator under the AAA mediation rules from the AAA Franchise Panel.
- (1) The mediation may take place by videoconference, unless the parties agree upon a different location. The mediator may decide the date and time for mediation and the parties will attend the mediation and use reasonable endeavors to resolve the dispute.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the mediation may occur via videoconference. However, the parties involved can agree to hold the mediation at a different physical location. This provides flexibility, allowing Chatime and the franchisee to choose a location that is mutually convenient, potentially reducing travel costs or accommodating specific needs.
For franchisees in Washington, the FDD stipulates that the mediation site must be in Washington state or a location mutually agreed upon at the time of mediation. This amendment ensures that Washington franchisees are not required to travel to a distant or inconvenient location for mediation. Similarly, for franchisees in North Dakota, the arbitration site must be agreeable by all parties and not be remote from the franchisee's place of business.
For prospective franchisees, this clause offers some reassurance that dispute resolution can be tailored to specific circumstances and geographic locations, potentially mitigating costs and logistical challenges associated with mediation. However, it's important to note that reaching an agreement on an alternate location is contingent on both parties consenting, and failing to do so may result in the mediation taking place via videoconference or, for arbitration, in New York, New York.