In the Gokhale Method agreement, what are the specific Commercial Arbitration Rules of the AAA that apply to arbitration?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 24.3. Arbitration. Except as otherwise provided in this section, all disputes between the parties shall, if not resolved by mediation, be resolved in arbitration before the American Arbitration Association ("AAA") under its Commercial Arbitration Rules.
Such arbitration shall take place before a sole arbitrator in Palo Alto, California.
The parties shall bear all of their own costs of arbitration; provided, however, the fees of the arbitrator shall be divided equally between the parties.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, disputes that are not resolved through mediation will be settled through arbitration facilitated by the American Arbitration Association (AAA) under its Commercial Arbitration Rules. The arbitration will occur before a single arbitrator in Palo Alto, California.
Both Gokhale Method and the franchisee are responsible for their own arbitration costs. However, the fees for the arbitrator will be equally divided between the two parties.
Mediation is not required for claims or disputes regarding payment obligations that are more than 45 days past due, the misuse of confidential information, issues related to the Marks or intellectual property ownership, or the enforcement of covenants outlined in Section 17 of the agreement. If a party does not respond to a mediation request within 15 days or fails to participate in scheduled mediation, they waive their right to mediate the dispute.