What happens if the initial meeting or telephone conference does not resolve the dispute related to a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Except for matters where either party seeks equitable relief, neither party will seek a judicial resolution of a dispute between them without first requesting a meeting or telephone conference with the other party by written notice, which notice will designate a party who is a senior executive with authority to reach a resolution of the dispute on their behalf. The party receiving the notice will also designate a representative of similar authority for the purpose of discussing the specific matter in dispute. If You are an individual, You will be Your designated representative. At least one meeting or telephone
conference of the designated representatives will be held in an effort to resolve the dispute. The parties will agree on a location, date and time for the meeting or telephone conference which must be within thirty (30) days of the initial notice. If the meeting(s) and/or telephone conferences do not resolve the dispute, either party may pursue mediation in accordance with Subsection 37(a)(ii).
- (ii) If the dispute is not resolved pursuant to Subsection 37(a)(i), the parties shall submit the dispute to mediation with a mediator who has experience in franchise law and in accordance with the Commercial Arbitration Rules and Mediation Procedures (Including Procedures for Large, Complex Commercial Disputes) of the American Arbitration Association ("AAA") unless both parties agree to waive mediation and proceed directly to arbitration as set forth in Subsection 37(a)(iii).
Each party will bear their own costs and fees of the mediation, however, the mediator's fee will be split equally between the parties."
- (iii) If the parties have not resolved a claim, controversy or dispute by negotiation, mediation, or otherwise (which the parties will make a diligent effort to do) or if a claim, controversy or dispute arises subsequent to the termination or expiration of this Agreement, such claim, controversy or dispute shall be referred to Arbitration in accordance with the AAA's Commercial Arbitration Rules and Mediation Procedures (Including Procedures for Large, Complex Commercial Disputes), as amended (and specifically including the Optional Rules).
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, if an initial meeting or telephone conference does not resolve a dispute, either party may pursue mediation. This mediation will involve a mediator experienced in franchise law and follow the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association (AAA). However, both parties can agree to waive mediation and proceed directly to arbitration.
Each party is responsible for their own costs and fees associated with the mediation. The mediator's fee, however, will be split equally between Dryject and the franchisee. This arrangement encourages both parties to engage in the mediation process seriously, as they both have a financial stake in reaching a resolution during mediation rather than incurring further costs through arbitration.
If negotiation and mediation do not resolve the dispute, the claim will be referred to Arbitration in accordance with the AAA's Commercial Arbitration Rules and Mediation Procedures. This applies to disputes arising both during and after the termination or expiration of the Franchise Agreement, indicating that Dryject aims to resolve all disputes through these structured methods.