What rules govern the mediation process for Expense Reduction Analysts disputes?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
n You think will settle the dispute.
- (4) You must then agree to clearly communicate the background facts leading to or causing the dispute, set out clearly what action is required to settle the dispute, select a way of resolving the dispute and explain why that way of resolving the dispute can be said to be a fair resolution of the dispute and identify, if the dispute is resolved, how the resolution of the dispute has or could enhance the business relationship between the parties for the future, particularly by identifying specific means of avoiding similar disputes arising between the parties in the future.
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.
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 remains unresolved after three weeks, Expense Reduction Analysts has the option to refer the matter to mediation. This mediation must occur in Dallas, Texas, under the rules of the American Arbitration Association (AAA). Specifically, the AAA's Commercial Mediation Rules in effect at that time will govern the process.
Both Expense Reduction Analysts and the franchisee are required to attend the mediation and make an effort to resolve the dispute. Unless otherwise agreed, the costs of the mediation itself are to be shared equally between the parties, while each party is responsible for covering their own expenses related to attending the mediation.
The FDD specifies that a franchisee cannot take legal action against Expense Reduction Analysts or its affiliates in court unless Expense Reduction Analysts chooses not to pursue mediation, or the mediation is terminated. Termination can occur either through a written declaration from the mediator stating that further efforts are unproductive or through a written declaration from Expense Reduction Analysts. Expense Reduction Analysts retains the right to enforce these mediation provisions specifically.
However, there are exceptions to this mediation requirement. Expense Reduction Analysts and the franchisee are not required to attempt mediation first if the dispute involves allegations of violations (or threatened violations) of federally protected intellectual property rights related to trademarks, the Expense Reduction Analysts system, confidential information, restrictive covenants within the agreement, or the franchisee's payment obligations under the agreement.