Who conducts the non-binding mediation between Chicken Guy and the franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided with respect to injunctive relief as set forth in this Agreement, in the event of any dispute arising from or in connection with this Agreement or the breach thereof or the relationship of the parties, the parties shall use their best efforts to settle the dispute by consulting and negotiating with each other in good faith to attempt to reach a solution satisfactory to both parties. If these methods fail, Chicken Guy and Franchisee agree to submit any claim, controversy, or dispute arising out of this Agreement or the relationship of the parties to non-binding mediation conducted by the American Arbitration Association (the "AAA") and in accordance with its then-current rules for
commercial mediation. Once either party has submitted a dispute to mediation, the obligation to attend will be binding on both parties. Both parties must sign a confidentiality agreement before participating in any mediation proceeding. The mediation will take place in the city where Chicken Guy's principal offices are located at the time the demand for mediation is filed. If a dispute cannot be resolved through mediation, the parties agree to submit the dispute to arbitration, subject to the terms and conditions of Section 31.B.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, disputes between Chicken Guy and a franchisee that cannot be resolved through good-faith negotiation will be submitted to non-binding mediation. This mediation is conducted by the American Arbitration Association (AAA). The AAA will follow its then-current rules for commercial mediation.
Both Chicken Guy and the franchisee are obligated to attend the mediation once either party submits a dispute. Prior to participating in the mediation, both parties must sign a confidentiality agreement. The location of the mediation will be in the city where Chicken Guy's principal offices are located when the demand for mediation is filed.
If the mediation is unsuccessful, the dispute will then be submitted to binding arbitration, also through the AAA, unless injunctive relief is sought. This structured approach—mediation followed by arbitration—is a common method for resolving franchise disputes outside of court, potentially saving time and legal costs for both parties.