What is the consequence of failing to participate in any scheduled mediation conference for a Gokhale Method dispute?

According to the 2024 Gokhale Method Franchise Disclosure Document, 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. This means that if a Gokhale Method franchisee does not respond to a mediation request or attend a scheduled mediation, they lose the opportunity to resolve the dispute through mediation.

This waiver has significant implications. Mediation is often a less expensive and time-consuming method of dispute resolution compared to arbitration or litigation. By waiving the right to mediate, the franchisee may be forced into arbitration, which the Gokhale Method FDD specifies will occur in Palo Alto, California. This could increase costs for the franchisee, especially if they are located far from California.

It is important to note that mediation is not required for all disputes. Specifically, mediation is not required for disputes involving payment obligations more than 45 days past due, actual or threatened disclosure or misuse of confidential information, the ownership, validity, or use of the Marks or ownership of Intellectual Property, or enforcement of covenants in Section 17 of the agreement. However, for other disputes, franchisees must actively engage in the mediation process to avoid waiving their rights.