Under what rules are Crisp & Green's pre-arbitration mediations administered?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Prior to filing any claim in arbitration, the parties agree that they will use good faith best efforts to resolve the dispute for a period of thirty (30) days, which must include a minimum of one in-person meeting to discuss and attempt to resolve the dispute.
At the expiration of such thirty (30) day period and only if the parties' good faith best efforts to resolve the dispute have been unsuccessful, the parties shall initiate pre-arbitration mediation administered through AAA by making a request for mediation in accordance with the AAA's Commercial Mediation Procedures.
The parties may only proceed to an arbitration action with AAA after they have participated in pre-arbitration mediation.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, before initiating arbitration, both parties must first engage in a good faith effort to resolve any dispute over a 30-day period, which includes at least one in-person meeting. If these efforts are unsuccessful, the parties must then participate in pre-arbitration mediation administered through the American Arbitration Association (AAA). This mediation is initiated by making a request in accordance with the AAA's Commercial Mediation Procedures.
The FDD specifies that parties can only proceed to arbitration with the AAA after participating in this pre-arbitration mediation. This mandatory mediation step is designed to encourage resolution before escalating to arbitration, potentially saving both parties time and expenses.
For prospective Crisp & Green franchisees, this means understanding and preparing for a structured dispute resolution process. Franchisees should familiarize themselves with the AAA's Commercial Mediation Procedures and be ready to engage in good faith negotiations and mediation before considering arbitration. This process is governed exclusively by the United States Federal Arbitration Act.