What initial steps must be taken to resolve a dispute with Chop5 Salad Kitchen before arbitration?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
22. DISPUTE RESOLUTION.
- 22.1. Negotiation and Mediation. Except as otherwise provided below with respect to Excluded Claims, the parties shall attempt in good faith to resolve any Dispute through informal discussions and negotiations. If these efforts are unsuccessful, the parties agree to submit the Dispute to mediation before a mutually-agreeable mediator prior to arbitration. All negotiations and mediation proceedings (including without limitation, discovery conducted therein, as well as all statements and settlement offers made by either party or the mediator in connection with the mediation) shall be strictly confidential, shall be considered as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence, and shall not be admissible or otherwise used in connection with any court or arbitration proceeding for any purpose. The mediator may not be called as a witness in any court or arbitration proceeding for any purpose. Any Dispute involving claims alleging a breach of §14 and/or §17 (referred to as "Excluded Claims") will not be subject to mandatory negotiation or mediation.
- 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, before resorting to arbitration, both parties must first attempt to resolve any dispute through informal discussions and negotiations. If these initial efforts are unsuccessful, the dispute must then be submitted to mediation with a mutually agreed-upon mediator.
All negotiations and mediation proceedings are to be kept strictly confidential. This includes any discovery conducted during the process, as well as any statements or settlement offers made by either party or the mediator. These discussions are considered compromise and settlement negotiations, and therefore, are not admissible or to be used in any court or arbitration proceeding. Furthermore, the mediator cannot be called as a witness in any subsequent court or arbitration proceeding.
If the dispute is not resolved through mediation within 60 days after a party demands mediation, then the parties will proceed to mandatory and binding arbitration. However, certain claims, specifically those alleging a breach of §14 and/or §17, are excluded from these mandatory negotiation and mediation requirements. These excluded claims can proceed directly to litigation.