What power does the mediator have to resolve the dispute between Chatime and the franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, a mediator does not have the power to make binding decisions to resolve disputes between Chatime and its franchisees. The role of the mediator is to facilitate discussions and help the parties reach a mutually agreeable resolution.
Specifically, the FDD states that the parties must attend the mediation and use reasonable efforts to resolve the dispute. The mediation process is confidential, with all discussions being without prejudice, and documents created for mediation cannot be used in later litigation. The mediator is expected to handle the matter expeditiously, aiming to conclude within 30 business days after the referral.
Ultimately, if mediation is unsuccessful, the dispute will be resolved through binding arbitration. This means that while mediation is a required step, it is non-binding, and the final decision rests with an arbitrator if the parties cannot come to an agreement through mediation.