What is the process for resolving disputes related to a Dryject franchise if negotiation and mediation fail?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 Dryject's 2025 Franchise Disclosure Document, if a resolution cannot be reached through negotiation and mediation, disputes will be settled through arbitration. The arbitration will be conducted in accordance with the American Arbitration Association's (AAA) Commercial Arbitration Rules and Mediation Procedures, including the Optional Rules. This applies to disputes that arise both during and after the termination or expiration of the Franchise Agreement.
This means that a prospective Dryject franchisee should be aware that if disagreements arise that cannot be resolved informally, the matter will be decided by a neutral arbitrator rather than a judge or jury in court. Arbitration is generally faster and less expensive than litigation, but the arbitrator's decision is usually binding and difficult to appeal. Franchisees should familiarize themselves with the AAA's rules to understand the arbitration process.
It is important for potential Dryject franchisees to understand this dispute resolution process, as it will govern how any conflicts with Dryject are handled. Franchisees should consider the implications of agreeing to arbitration, including the potential costs and limitations on their legal rights. Consulting with an attorney experienced in franchise law is advisable to fully understand the dispute resolution terms and their impact.