If mediation fails to resolve a Gokhale Method dispute, what is the next step?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
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 a dispute, the parties must resolve it through arbitration. The arbitration will occur before the American Arbitration Association (AAA) under its Commercial Arbitration Rules. The location for arbitration is Palo Alto, California, and will take place before a sole arbitrator.
Both parties will bear their own costs related to the arbitration. However, the fees for the arbitrator will be divided equally between the parties. This arbitration clause applies to all disputes between Gokhale Method and the franchisee, except for specific claims or disputes.
These exceptions include payment obligations that are more than 45 days past due, issues involving the disclosure or misuse of confidential information, disputes over the ownership or use of the Marks or Intellectual Property, and enforcement of covenants detailed in Section 17 of the Franchise Agreement. These types of disputes may not require mediation and can proceed directly to other resolution methods.