Before initiating arbitration for a dispute with Dryer Vent Squad, what prerequisite step must both parties undertake?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
(a) Arbitration – Except, at our option, as to any claims or disputes related to or concerning a breach of this Agreement by you that may entitle us to the award of injunctive relief, you agree that any and all disputes, controversies, and claims, arising from and/or related to this Agreement, shall be submitted to the American Arbitration Association for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with the American Arbitration Association's then current rules for commercial disputes, except as may be otherwise required in this Agreement. All arbitration proceedings shall be conducted in Ocean County, New Jersey or, if suitable American Arbitration Association facilities are not available in Ocean County, New Jersey, then at a suitable American Arbitration Association location selected by the arbitrator that is located closest to Ocean County, New Jersey.
In connection with binding arbitration, you agree that:
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
The Dryer Vent Squad's 2024 Franchise Disclosure Document does not specify a required prerequisite step of mediation that both parties must undertake before initiating arbitration for disputes. The document states that any disputes arising from or related to the Franchise Agreement will be submitted to the American Arbitration Association for binding arbitration.
Arbitration will be conducted by one arbitrator following the American Arbitration Association's rules for commercial disputes, unless the agreement specifies otherwise. All arbitration proceedings will take place in Ocean County, New Jersey, or at an American Arbitration Association location closest to Ocean County if suitable facilities are unavailable there.
While the FDD mentions arbitration, it does not detail any mandatory mediation or negotiation period that must occur before starting arbitration. Prospective franchisees should clarify with Dryer Vent Squad whether there are any informal dispute resolution steps required before arbitration, as these may not be explicitly stated in the FDD but could be part of company policy or unwritten practice.