What is the deadline for a party to acknowledge its obligation to mediate a Gokhale Method dispute?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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;
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, if a dispute arises, both parties must initially attempt to resolve it through mediation administered by the American Arbitration Association (AAA). A party has fifteen days from the date of written notice to acknowledge their obligation to participate in mediation.
If a party fails to acknowledge this obligation within the 15-day period, or if mediation is unsuccessful as certified by the mediator, the parties can then proceed to arbitration. Failing to respond to a mediation request within fifteen days or not participating in scheduled mediation conferences results in a waiver of the right to mediate the dispute.
Mediation will occur at a mutually agreed location, or in Palo Alto, California, if no agreement is reached. Each party bears their own mediation costs, while the mediator's fees are split equally. However, mediation is not required for claims involving overdue payments exceeding 45 days, misuse of confidential information, issues regarding trademarks or intellectual property, or enforcement of specific covenants within the agreement.