Can Chatime mediation take place via videoconference?
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.
- (2) The parties to the mediation agree that: everything that occurs before the mediator will be in confidence and in closed session; all discussions will be without prejudice; and no documents brought into existence specifically for the purpose of the mediation process will be called into evidence in any subsequent litigation by either of the parties. The mediator will deal with any matter as expeditiously as possible by no later than 30 Business Days after referral to the mediator.
- (3) The parties to the mediation will bear the costs of the mediation on an equal basis. Each party will bear its own costs of attending and preparing for the mediation.
- (4) The mediator will have no power to make any decision binding on the Parties 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, mediation can take place via videoconference. Specifically, if a dispute arises and cannot be resolved within 30 days after a Notice of Dispute is given, either party can request mediation. If the parties cannot agree on a mediator, the American Arbitration Association (AAA) can appoint one from the AAA Franchise Panel.
The FDD states that the mediation may occur via videoconference unless both parties agree to a different location. The mediator will determine the date and time, and both parties are expected to attend and make reasonable efforts to resolve the dispute. All discussions during mediation are confidential and without prejudice, and documents created specifically for the mediation cannot be used in later litigation.
The costs of mediation will be shared equally between the parties, but each party is responsible for their own expenses related to attending and preparing for the mediation. It is important to note that the mediator does not have the power to make any binding decisions on the parties. If mediation is unsuccessful, the dispute will be resolved through binding arbitration.