Are disputes arising from antitrust laws subject to mediation for Crawlspace Medic?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.2. Mediation. At Franchisor's or Franchisee's option, any claim, controversy or dispute that is not resolved pursuant to Section 20.1 hereof shall be submitted to non-binding mediation, except claims relating to the Lanham Act of 1946 or Federal law prior to any litigation. Franchisee shall provide Franchisor with written notice of Franchisee's intent to pursue any unresolved claim, controversy or dispute, specifying in sufficient detail the nature thereof, prior to commencing any legal action. Franchisor shall have thirty (30) days following receipt of Franchisee's notice to exercise Franchisor's option to submit such claim, controversy or dispute to mediation. Mediation shall be conducted through a mediator or mediators selected via the American Arbitration Association. 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 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, mediation is required for most disputes, but there is an exception. Specifically, claims relating to the Lanham Act of 1946 or Federal law prior to any litigation are excluded from mandatory mediation. Since antitrust laws are federal laws, disputes arising from them would not be subject to mandatory mediation before litigation.
Before pursuing any legal action, a Crawlspace Medic franchisee must provide the franchisor with written notice detailing the nature of the unresolved claim, controversy, or dispute. Following this notice, Crawlspace Medic has 30 days to decide whether to submit the issue to mediation. The mediation process itself is to be conducted through a mediator selected via the American Arbitration Association and will take place at Crawlspace Medic's corporate headquarters.
The costs and expenses associated with mediation, excluding attorneys' fees, are to be split equally between Crawlspace Medic and the franchisee. Crawlspace Medic retains the right to specifically enforce its rights to mediation as outlined in the franchise agreement. This means that while mediation is not required for Lanham Act or federal law claims, it is the first step for resolving other disputes related to the franchise agreement.