What rules govern the mediation process for Cinch I.T. franchise disputes?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- (ii) If the dispute is not resolved pursuant to Subsection 37(a)(i), the parties shall submit the dispute to mediation in accordance with the Commercial Arbitration Rules and Mediation Procedures (Including Procedures for Large, Complex Commercial Disputes) of the American Arbitration Association ("AAA") unless both parties agree to waive mediation and proceed directly to arbitration as set forth in Subsection 37(a)(iii).
Each party will bear their own costs and fees of the mediation, however, the mediator's fee will be split equally between the parties.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, if a dispute is not resolved through initial discussions between designated representatives, the parties must submit to mediation. This mediation will follow the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association (AAA), including those for large, complex commercial disputes, unless both parties agree to waive mediation and proceed directly to arbitration.
Each party is responsible for their own costs and fees associated with the mediation. The mediator's fee, however, will be split equally between Cinch I.T. and the franchisee. This cost-sharing arrangement for the mediator's fee is a fairly standard practice in franchise mediation, as it encourages both parties to participate constructively in the process.
If mediation does not resolve the dispute, either party may then proceed to arbitration. It is important for prospective Cinch I.T. franchisees to understand these dispute resolution steps, as they outline the process for resolving conflicts and the associated costs.