Does the Gokhale Method Franchise Agreement require disputes to be settled through mediation?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement requires the parties to try to settle disputes in mediation administered by the American Arbitration Association ("AAA") under its Commercial Mediation Procedures.
If not resolved by mediation, the Franchise Agreement requires binding arbitration.
The arbitration will occur at Palo Alto, California with the costs being borne by the parties equally.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the Franchise Agreement requires the parties to first attempt to resolve disputes through mediation. Specifically, the FDD states that mediation should be administered by the American Arbitration Association (AAA) under its Commercial Mediation Procedures.
If mediation is unsuccessful, the Gokhale Method Franchise Agreement mandates binding arbitration. The location for arbitration is Palo Alto, California, and the costs associated with arbitration will be equally shared between the parties involved.
It is important to note that these mediation and arbitration requirements are subject to California law. Prospective Gokhale Method franchisees are encouraged to seek legal counsel to understand how California and federal laws, such as the Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act, may affect any provisions in the franchise agreement that restrict the venue to a forum outside of California.