What is the deadline for a party to acknowledge its obligation to mediate a dispute related to the Gokhale Method agreement?
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 first attempt to settle it through mediation administered by the American Arbitration Association (AAA). A party has 15 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 the mediator certifies in writing that the dispute remains unresolved after mediation, the parties can then proceed to arbitration. Failing to respond to a written request for mediation or participate in scheduled mediation conferences within the 15-day period constitutes a waiver of the right to mediate the issue.
Mediation will occur at a mutually agreed location, or in Palo Alto, California, if no agreement is reached. Each party bears their own costs, while the mediator's fees are split equally. However, mediation is not required for claims involving payment obligations over 45 days past due, misuse of confidential information, issues regarding the Marks or Intellectual Property, or enforcement of covenants in Section 17 of the agreement.