What is the deadline for concluding non-binding mediation related to the Extreme Art Studio Franchise Agreement?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 17.5 MEDIATION. Except as otherwise provided in this Franchise Agreement, any claim or controversy arising out of or related to this Franchise Agreement, or the making, performance, breach, interpretation or termination thereof shall first be subject to non-binding mediation in the county of our principal business address, which is currently in Eden Prairie, Minnesota. Mediation shall not defer or suspend our exercise of any termination right under Sections 14 and 15. Non-binding mediation hereunder shall be concluded within 60 days of the issuance of the request, or such longer period as may be agreed upon by the parties in writing ("Mediation Termination Date"). All aspects of the mediation process shall be treated as confidential, shall not be disclosed to others, and shall not be offered or admissible in any other proceeding or legal action whatsoever. The parties shall bear their own costs of mediation and shall share equally in the cost of the mediator or mediation service. Mediation under this Section is not intended to alter or suspend the rights or obligations of the parties under this Franchise Agreement or to determine the validity or effect of any provision of this Franchise Agreement, but is intended to furnish the parties an opportunity to resolve disputes amicably, expeditiously and in a cost-effective manner on mutually acceptable terms. The non-binding mediation provided for hereunder shall be commenced by the party requesting mediation giving written notice of the request for mediation to the party with whom mediation is sought. The request shall specify with reasonable particularity the matters for which non-binding mediation is sought. Non-binding mediation hereunder shall be conducted by a mediator or mediation program designated by us in writing. We shall make the designation within a reasonable time after issuance of the request.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, any claim or controversy related to the Franchise Agreement must first be subject to non-binding mediation in the county of Extreme Art Studio's principal business address, which is Eden Prairie, Minnesota. This mediation does not defer or suspend Extreme Art Studio's right to terminate the agreement under Sections 14 and 15.
The non-binding mediation must conclude within 60 days of the issuance of the request for mediation, unless both parties agree in writing to a longer period, establishing a "Mediation Termination Date." All aspects of the mediation process are to be treated as confidential and are not admissible in any other proceeding or legal action. Each party is responsible for their own costs, while the cost of the mediator or mediation service will be shared equally.
The mediation process is initiated by the party requesting mediation, who must provide written notice specifying the matters for which mediation is sought. Extreme Art Studio will designate a mediator or mediation program within a reasonable time after the request is issued. This mediation is intended to provide an opportunity for resolving disputes amicably and cost-effectively, without altering or suspending the rights and obligations outlined in the Franchise Agreement.