What is the role of the American Arbitration Association (AAA) in Ella Cafe mediation?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) The mediation will be conducted by a mediator agreed upon by Franchisor and Franchisee.
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, the American Arbitration Association (AAA) serves as the mediator if Ella Cafe and the franchisee cannot agree on a mediator within 15 days after either party expresses a desire to seek mediation. In this situation, the mediation will occur with the AAA or any successor organization, following the AAA's rules for mediation.
The mediation will be held at the AAA offices located in the city where Ella Cafe's principal business office is located at the time of the mediation. The costs and expenses paid to the AAA or the mediator will be split equally between Ella Cafe and the franchisee. However, all other mediation-related expenses, such as attorney's fees and travel expenses, will be the responsibility of the party that incurs them.
It is important to note that certain claims are excepted from the mediation requirement, including actions seeking injunctive relief, actions Ella Cafe may bring relating to Marks or Confidential Information, and the franchisee's nonpayment of any fees under the Franchise Agreement to Ella Cafe. If the parties cannot resolve the dispute within 90 days after the mediator is chosen, either party may initiate legal proceedings, unless this period is extended by written agreement.