Who administers the mediation for Gokhale Method disputes?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Mediation.
Except as otherwise provided herein, if a dispute arises between the parties, whether relating to this Agreement or not, the parties must first try in good faith to settle the dispute by mediation administered by the American Arbitration Association ("AAA") under its Commercial Mediation Procedures.
Only if a party fails or refuses to acknowledge its obligation to mediate after 15 days' written notice, or after a mediator has certified in writing that, following mediation, the dispute is not resolved, may the parties proceed to arbitration.
The mediation shall take place at a mutually agreed location, or, if the parties cannot agree to a location, in Palo Alto, California.
The parties shall each bear all of their own costs of mediation; provided, however, the fees of the mediator shall be divided equally between the parties.
The parties hereto agree that mediation shall not be required with respect to any claim or dispute involving: (a) any payment obligation of yours that is more than forty five (45) days past due; (b) actual or threatened disclosure or misuse of our Confidential Information; (c) the ownership, validity, or use of the Marks or ownership of Intellectual Property (d) enforcement the covenants set forth in Section 17 of this Agreement.
If a party fails to respond to a written request for mediation within fifteen (15) days after service or fails to participate in any scheduled mediation conference, that party shall be deemed to have waived its right to mediate the issue in dispute.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the American Arbitration Association (AAA) administers the mediation process. If a dispute arises between Gokhale Method and a franchisee, both parties must first attempt to resolve it through mediation under the AAA's Commercial Mediation Procedures.
This means that if a franchisee has a disagreement with Gokhale Method, whether it relates to the franchise agreement or not, they are obligated to participate in mediation facilitated by the AAA before pursuing arbitration. This initial step aims to encourage a good-faith effort to settle disputes amicably and potentially avoid the more formal and costly process of arbitration.
However, mediation is not required for certain types of claims. These exceptions include payment obligations that are more than 45 days past due, issues involving the disclosure or misuse of confidential information, disputes over the ownership or use of Gokhale Method's trademarks or intellectual property, and enforcement of specific covenants within Section 17 of the agreement. In these specific cases, Gokhale Method or the franchisee can proceed directly to arbitration without first engaging in mediation.
The mediation will take place at a mutually agreed location, or if no agreement can be reached, it will occur in Palo Alto, California. Each party is responsible for their own mediation costs, while the mediator's fees are split equally between the parties. Failure to respond to a mediation request within 15 days or to participate in a scheduled mediation conference results in a waiver of the right to mediate the dispute.