Where will mediation be held for Ella Cafe disputes?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Neither illness, Covid, inconvenience, weather, or any other reason shall serve to excuse your personal appearance for mediation.
Mediation must be conducted in person pursuant to Section 14.2.2., and no telephonic or electronic appearance by any of the parties or their counsel is permitted except for the purposes of scheduling mediation or discussion non-material mediation-related matters.
Notwithstanding the foregoing provisions of this Section 14.2., the parties' agreement to mediate will not apply to controversies, disputes, or claims relating to or based on past due amounts owed to Franchisor pursuant to this Agreement, the Marks, Copyrighted Works, or Franchisor's Confidential Information.
Moreover, regardless of this mediation agreement, Franchisor and Developer each have the right in a proper case to seek temporary restraining orders and temporary or preliminary injunctive relief in any court of competent jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, mediation will be held at the American Arbitration Association (AAA) offices located in the same city as Ella Cafe's principal business office at the time of the mediation. This means that if a dispute arises that requires mediation, franchisees may need to travel to the city where Ella Cafe's headquarters are located. Currently, Ella Cafe's principal office is in Plantation, Florida.
The FDD specifies that the costs and expenses paid to the AAA or the mediator will be split equally between the parties involved. However, all other mediation-related expenses, such as attorney's fees and travel expenses, will be the responsibility of the party that incurs them. This could potentially create a financial burden for the franchisee, especially if the franchisee is located far from Ella Cafe's principal business office.
It is important to note that personal appearance for mediation is mandatory, and excuses such as illness, COVID, inconvenience, or weather will not be accepted. Furthermore, telephonic or electronic appearances are not permitted, except for scheduling or discussing non-material matters related to the mediation. This requirement for in-person mediation could add to the overall cost and time commitment for the franchisee.
The agreement to mediate does not apply to disputes relating to past due amounts owed to Ella Cafe, the Marks, Copyrighted Works, or Ella Cafe's Confidential Information. In these cases, Ella Cafe and the developer each have the right to seek temporary restraining orders and injunctive relief in any court of competent jurisdiction, regardless of the mediation agreement.