factual

What happens if Chatime parties cannot agree on a mediator?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 23 — Receipts (FDD pages 58–262)

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, if the parties involved in a dispute cannot agree on a mediator, either party has the option to submit the matter to the American Arbitration Association (AAA). The AAA will then appoint a mediator from the AAA Franchise Panel, following the AAA mediation rules. This ensures that a neutral third party can be brought in to help resolve the dispute even if the parties cannot agree on a mediator themselves.

This process is initiated if the parties cannot resolve their dispute within 30 days from the date of the initial Notice of Dispute. After this 30-day period, either party can take the necessary steps to involve a mediator. The mediation itself may occur via videoconference, unless both parties agree to a different physical location. The chosen mediator will determine the date and time for the mediation, and both parties are expected to attend and make reasonable efforts to resolve the issue.

It is important to note that the mediator does not have the authority to make any binding decisions. The role of the mediator is to facilitate discussion and guide the parties toward a mutually agreeable resolution. If mediation is unsuccessful, the dispute will be resolved through binding arbitration. This means that if the parties cannot come to an agreement through mediation, they will proceed to a more formal process where a decision will be imposed upon them.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.