What is the definition of 'AAA' as it relates to Ella Cafe mediation?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
If agreement cannot be reached within 15 days after either party has notified the other of its desire to seek mediation, then mediation will occur with the American Arbitration Association or any successor organization ("AAA") in accordance with its rules governing mediation.
Mediation will be held at the offices of the AAA in the city where Franchisor's principal business office is located at the time of the mediation.
The costs and expenses of mediation paid to the AAA or to the mediator will be paid equally by the parties.
All other mediation-related expenses, including but not limited to, attorneys' fees and travel expenses, will be paid by the party which incurred such expense.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, 'AAA' refers to the American Arbitration Association or any successor organization. This definition is relevant in the context of dispute resolution between Ella Cafe and its franchisees. If Ella Cafe and a franchisee cannot agree on a mediator within 15 days of either party expressing a desire for mediation, the mediation will then be conducted through the American Arbitration Association (AAA) or its successor, following the AAA's mediation rules.
The mediation will take place at the AAA's offices located in the same city as Ella Cafe's principal business office at the time of the mediation. The costs and expenses associated with the mediator or the AAA are to be split equally between Ella Cafe and the franchisee. However, each party is responsible for their own additional expenses, such as attorney's fees and travel costs.
This clause ensures that there is a structured process for resolving disputes outside of court. By using the AAA, Ella Cafe and its franchisees agree to a neutral third party to help mediate disagreements. However, it is important to note that certain claims are excluded from this mediation requirement, such as actions seeking injunctive relief, actions related to Ella Cafe's trademarks or confidential information, and the franchisee's nonpayment of fees to Ella Cafe.