Is mediation mandatory for disputes with Crawl Space Ninja?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| u. | Dispute resolution by arbitration or mediation | Sections 20.1 and 20.2 | At our option, claims that are not resolved internally may be submitted to non-binding mediation only at our headquarters located in Knoxville, TN. (subject to state law) |
| v. | Choice of forum | Section 20.3 | Litigation takes place in Tennessee. (subject to state law) |
| w. | Choice of law | Section 20.3 | Tennessee law applies. (subject to state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–41)
What This Means (2024 FDD)
According to Crawl Space Ninja's 2024 Franchise Disclosure Document, mediation is not mandatory. The FDD states that claims that are not resolved internally may be submitted to non-binding mediation only at Crawl Space Ninja's headquarters in Knoxville, TN, and this is at Crawl Space Ninja's option. This means that a franchisee cannot force Crawl Space Ninja to mediate.
This arrangement favors Crawl Space Ninja, as they retain control over whether or not to pursue mediation. A franchisee may prefer mandatory mediation to avoid the costs and time associated with litigation, but under the franchise agreement, they do not have the right to demand it.
Furthermore, if Crawl Space Ninja does opt for mediation, it will take place at their headquarters in Knoxville, TN, which may create additional expenses for the franchisee related to travel and lodging. Any litigation will also take place in Tennessee, under Tennessee law.