What is the deadline for filing a written demand for mediation against Chop5 Salad Kitchen?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
- 22.2. Arbitration. If the Dispute is not resolved by mediation within 60 days after either party makes a demand for mediation, the parties will submit the Dispute to mandatory and binding arbitration conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The party filing the arbitration must initially bear the cost of any arbitration fees or costs. The arbitrators will not have authority to award exemplary or punitive damages. Any Dispute involving an Excluded Claim will not be subject to mandatory arbitration.
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, if informal discussions and negotiations fail to resolve a dispute, both parties must submit to mediation before arbitration. Should mediation be required, either party has 60 days after making a demand for mediation to resolve the dispute. If the dispute remains unresolved after this 60-day period, the parties will then proceed to mandatory and binding arbitration. This timeline does not apply to claims alleging a breach of §14 and/or §17, referred to as "Excluded Claims".
This means that a Chop5 Salad Kitchen franchisee has a limited window to attempt to resolve disputes through mediation before moving to arbitration. The 60-day period encourages efficient resolution but also requires the franchisee to act promptly in pursuing mediation. Franchisees should be aware of this deadline to ensure they do not lose the opportunity to mediate before arbitration.
It is also important to note that certain claims, specifically those alleging a breach of §14 and/or §17, are exempt from this mandatory negotiation and mediation process. These "Excluded Claims" can proceed directly to litigation, offering an alternative route for specific types of disputes. Prospective franchisees should carefully review sections §14 and §17 of the Franchise Agreement to understand what types of claims fall under this exclusion and how they would be handled differently.