If mediation fails to resolve a dispute, how will disputes between the parties be resolved for Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
in dispute.
- 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. The parties hereto agree that arbitration shall not be required, and the parties may proceed in court, with respect to any claim or dispute involving: (a) any payment obligation of yours that is more than forty five (45) days past due; (b) actual or threatened disclosure or misuse of our Confidential Information; (c) the ownership, validity, or use of the Marks; and the Intellectual Property (d) enforcement the covenants set forth in Section 17 of this Agreement.
- 24.4.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, if mediation does not resolve disputes, the disputes will be resolved through arbitration. The arbitration will be before the American Arbitration Association ("AAA") under its Commercial Arbitration Rules.
The arbitration will take place before a single arbitrator in Palo Alto, California. Both parties will bear their own costs of arbitration, but the fees of the arbitrator will be divided equally between the parties.
The FDD encourages prospective Gokhale Method franchisees to seek legal counsel to understand how California and federal laws apply to franchise agreement provisions that restrict the venue to a forum outside of California.