Where will mediation take place if Cilantro Taco Grill elects to mediate a dispute?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
Mediation shall be conducted through a mediator or mediators in accordance with the American Arbitration Association Commercial Mediation Rules. Such mediation shall take place in the then-current location of Franchisor's corporate headquarters. The costs and expenses of mediation, including compensation and expenses of the mediator (and except for the attorneys' fees incurred by either party), shall be borne by the parties equally. Franchisor may specifically enforce Franchisor's rights to mediation, as set forth herein.
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, if mediation is elected as a method of dispute resolution, it will occur at the location of Cilantro Taco Grill's corporate headquarters at the time of the mediation. This is only at the election of Cilantro Taco Grill. The franchisee must first attempt to resolve any dispute internally with Cilantro Taco Grill's president and/or chief executive officer before pursuing mediation or any other legal action.
This means that a franchisee may be required to travel to Cilantro Taco Grill's headquarters for mediation, potentially incurring travel costs and other related expenses. The FDD also states that the costs and expenses of mediation, excluding attorney's fees, will be split equally between the franchisee and Cilantro Taco Grill.
It is important for a prospective franchisee to consider the potential costs and logistical challenges associated with mandatory mediation at Cilantro Taco Grill's corporate headquarters. Franchisees should also be aware of the internal dispute resolution steps that must be taken before any other action.