Who bears the costs of mediation in a dispute involving Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.5. Mediation.
Except as otherwise provided in this Section 12.5, any controversy or claim arising between us will first be submitted to non-binding mediation administered by an established, neutral mediation service with experience in franchise disputes.
In the event the parties cannot agree on a mediator within thirty (30) days of one party's written request to the other party to mediate a dispute, such party (the complainant, defined below) shall submit the dispute to, and any such mediation shall be conducted by JAMS in accordance with its then-current rules for mediation of commercial disputes.
Both parties must sign a confidentiality agreement before participating in any mediation proceeding.
The mediation will take place in the city where our principal offices are located at the time the demand for mediation is filed.
The mediation shall be non-binding.
Notwithstanding anything to the contrary, this Section 12.5 shall not bar either party from obtaining judicial or injunctive relief for claims that are based solely on demands for money owed, or from obtaining injunctive relief against threatened conduct that will cause it loss or damages, under the
usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions, without having to engage in mediation; this exception includes, without limitation, claims involving the Marks.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, any controversy or claim arising between the franchisor and franchisee will first be submitted to non-binding mediation administered by an established, neutral mediation service experienced in franchise disputes. If the parties cannot agree on a mediator within thirty days of a written request to mediate, the dispute will be submitted to, and the mediation conducted by, JAMS (Judicial Arbitration and Mediation Services) in accordance with its current rules for mediation of commercial disputes. The mediation will take place in the city where Dermani Medspa's principal offices are located when the demand for mediation is filed. Both parties must sign a confidentiality agreement before participating in any mediation proceeding. The mediation shall be non-binding.
This means that before pursuing legal action, both Dermani Medspa and the franchisee must attempt to resolve their dispute through mediation. The location of the mediation is specified as the city where Dermani Medspa's principal offices are located, which may require the franchisee to travel.
However, this mediation requirement does not prevent either party from seeking judicial or injunctive relief for claims based solely on demands for money owed or from obtaining injunctive relief against threatened conduct that will cause loss or damages, including claims involving the Marks, without engaging in mediation. This exception allows Dermani Medspa to quickly address issues like trademark infringement or unpaid fees without the delay of mediation.