What is the required number of arbitrators for resolving disputes related to the Gokhale Method franchise?
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)
The 2024 Gokhale Method Franchise Disclosure Document states that if mediation does not resolve disputes, binding arbitration is required. The FDD does not specify the number of arbitrators needed to resolve disputes. The arbitration will occur in Palo Alto, California, and the costs will be equally shared between the parties.
Prospective franchisees should be aware that the franchise agreement requires application of California law, except for covenants not to compete, which are governed by the laws of the state where the franchisee is located. The addendum to the FDD for California franchisees notes that certain provisions in the franchise documents must be consistent with California law, including the California Franchise Investment Law and the California Franchise Relations Act.
It is important for potential franchisees to seek independent legal counsel to understand the implications of these arbitration and legal provisions, especially concerning venue restrictions and rights under California and federal laws. Because the number of arbitrators is not specified in the FDD, prospective franchisees should ask Gokhale Method about this during their due diligence.