If Expense Reduction Analysts refers a dispute to mediation, where must the mediation be conducted?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
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 arises and cannot be resolved within three weeks, Expense Reduction Analysts has the option to refer the matter to mediation. Should Expense Reduction Analysts choose this route, the mediation must occur in Dallas, Texas.
The mediation will be conducted under the guidelines of the American Arbitration Association (AAA), following their Commercial Mediation Rules that are in effect at the time. Both parties, Expense Reduction Analysts and the franchisee, are required to attend the mediation and make an effort to resolve the dispute.
The costs associated with the mediation itself are to be split equally between the parties unless they agree to a different arrangement. However, each party is responsible for covering their own expenses related to attending the mediation, such as travel and accommodation. Franchisees should be aware of these potential costs when considering dispute resolution options with Expense Reduction Analysts.
It's important to note that franchisees cannot initiate legal action against Expense Reduction Analysts or its affiliates unless Expense Reduction Analysts declines to submit the dispute to mediation or the mediation proceedings are terminated. This clause ensures that mediation is attempted before resorting to litigation, potentially saving both parties time and money. However, Expense Reduction Analysts retains the right to enforce mediation specifically.