After a demand for mediation, how long does Chop5 Salad Kitchen have to resolve the dispute before arbitration?
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 the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, if a dispute is not resolved through mediation, the parties involved must submit to mandatory and binding arbitration. This arbitration will be conducted following the Commercial Arbitration Rules of the American Arbitration Association. The timeline for this process states that if mediation does not resolve the dispute within 60 days after a party demands mediation, arbitration becomes mandatory.
This means a prospective Chop5 Salad Kitchen franchisee should be aware that any unresolved disputes will first go through mediation. If mediation fails to produce a resolution within the specified 60-day period, the dispute will then proceed to binding arbitration. The franchisee should also note that the party initiating the arbitration is responsible for covering the initial arbitration fees and costs.
It is important to note that the arbitrators do not have the authority to award exemplary or punitive damages. Additionally, certain claims, specifically those alleging a breach of §14 and/or §17, are excluded from both mandatory negotiation, mediation, and mandatory arbitration, and may be subject to litigation.