How are the mediator's fees divided between the parties in a Gokhale Method mediation?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Mediation.
Except as otherwise provided herein, if a dispute arises between the parties, whether relating to this Agreement or not, the parties must first try in good faith to settle the dispute by mediation administered by the American Arbitration Association ("AAA") under its Commercial Mediation 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; provided, however, the fees of the mediator shall be divided equally between the parties.
The parties hereto agree that mediation shall not be required 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 or ownership of Intellectual Property (d) enforcement the covenants set forth in Section 17 of this Agreement.
If a party fails to respond to a written request for mediation within fifteen (15) days after service or fails to participate in any scheduled mediation conference, that party shall be deemed to have waived its right to mediate the issue in dispute.
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 between Gokhale Method and a franchisee, both parties must first attempt to settle through mediation administered by the American Arbitration Association (AAA). The mediation will take place at a mutually agreed location, or in Palo Alto, California, if an agreement cannot be reached. Each party is responsible for their own costs associated with the mediation. However, the fees for the mediator are divided equally between Gokhale Method and the franchisee.
Mediation is not required for certain claims or disputes. These include any payment obligation of the franchisee that is more than 45 days past due, actual or threatened disclosure or misuse of Gokhale Method's confidential information, disputes over the ownership, validity, or use of the Marks or ownership of Intellectual Property, and enforcement of covenants outlined in Section 17 of the Franchise Agreement.
If a party fails to respond to a written request for mediation within 15 days or does not participate in any scheduled mediation conference, they waive their right to mediate the issue. If mediation does not resolve the dispute, the parties may proceed to arbitration, where again, each party bears their own costs, but the arbitrator's fees are divided equally.