Where will mediation take place for a Devon Creek franchise dispute?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
20.2 Mediation. At Franchisor's option, any claim, controversy or dispute that is not resolved pursuant to Section 20.1 hereof shall be submitted to non-binding mediation. 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 up to 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 in accordance with the American Arbitration Association Commercial Mediation Rules. 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 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, if mediation is required to resolve a dispute, it will occur at the location of Devon Creek's corporate headquarters at the time. The FDD specifies that mediation is not mandatory, but at the option of Devon Creek. If Devon Creek chooses mediation, it will be conducted through a mediator, or mediators, following the American Arbitration Association Commercial Mediation Rules.
This means that a Devon Creek franchisee may be required to travel to the location of the corporate headquarters to participate in mediation. As of the date of the franchise agreement, the corporate headquarters is located in Indian Trail, NC. The franchisee will share the costs and expenses of mediation with Devon Creek, except for the franchisee's attorney's fees.
It is important to note that this mediation process is non-binding, meaning that either party can choose to pursue other legal options after mediation. However, Devon Creek can specifically enforce its rights to mediation as outlined in the franchise agreement. Franchisees should consider the potential costs and logistical challenges of traveling to the corporate headquarters for mediation when evaluating this franchise opportunity.