What is the process for selecting a mediator for a Dryject franchise dispute?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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."
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if a dispute arises that cannot be resolved through initial discussions between senior executives, the parties involved must submit to mediation. The mediator chosen should have experience in franchise law. The mediation process must align with the Commercial Arbitration Rules and Mediation Procedures (Including Procedures for Large, Complex Commercial Disputes) set forth by the American Arbitration Association (AAA). However, both Dryject and the franchisee can mutually agree to bypass mediation and proceed directly to arbitration.
Each party is responsible for covering their own costs and fees associated with the mediation. The fees charged by the mediator will be split equally between Dryject and the franchisee. This arrangement ensures that both parties share the financial burden of the mediation process.
If mediation does not resolve the dispute, or if a dispute arises after the termination or expiration of the franchise agreement, the matter will be settled through arbitration. This arbitration will also follow the AAA's Commercial Arbitration Rules and Mediation Procedures, including any optional rules. This structured approach to dispute resolution aims to provide a fair and consistent process for addressing conflicts that may arise between Dryject and its franchisees.