Are Expense Reduction Analysts franchisees required to attend mediation?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
28.2 Mediation
- (1) If the dispute is not resolved in accordance with Section 29.1(3) within three (3) weeks, the Franchisor has the option to refer the matter to a mediator for mediation.
- (2) The mediation must be conducted in Dallas, Texas, under the auspices of the American Arbitration Association ("AAA"), in accordance with AAA's Commercial Mediation Rules then in effect.
- (3) The parties must attend any mediation instituted under this Section and try to resolve the dispute. The parties are equally liable for the costs of mediation unless they otherwise agree. The parties must pay their own costs of attending the mediation.
- (4) You may not commence any action against the Franchisor or its affiliates with respect to any such claim or dispute in any court unless the Franchisor fails to exercise its option to submit such claim or dispute to mediation, or such mediation proceedings have been terminated either: (i) as the result of a written declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as a result of a written declaration by the Franchisor. The Franchisor's rights to mediation, as set forth herein, may be specifically enforced by the Franchisor.
Notwithstanding the foregoing, the parties will not be required to first attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 29.2 if such controversy, dispute, or claim concerns an allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (a) any federally protected intellectual property rights in the Trademarks, the ERA System, or in any Confidential Information or other confidential information; (b) any of the restrictive covenants contained in this Agreement; and (c) any of Your payment obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, if a dispute is not resolved within three weeks, Expense Reduction Analysts has the option to refer the matter to a mediator. If Expense Reduction Analysts chooses to pursue mediation, franchisees must attend. The mediation will occur in Dallas, Texas, following the American Arbitration Association's Commercial Mediation Rules.
The franchisee and Expense Reduction Analysts are equally responsible for the costs of mediation unless they agree otherwise. Each party must cover their own expenses for attending the mediation.
However, there are exceptions where mediation is not required. These exceptions include disputes involving allegations that a party has violated federally protected intellectual property rights in the Trademarks, the ERA System, or Confidential Information, any restrictive covenants in the agreement, and any of the franchisee's payment obligations under the agreement.