Under what procedures does the American Arbitration Association administer mediation for Gokhale Method franchise disputes?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
- 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, mediation is administered by the American Arbitration Association (AAA) under its Commercial Mediation Procedures. If a dispute arises between Gokhale Method and a franchisee, both parties must first try to settle the dispute through this mediation process in good faith.
A party must acknowledge its obligation to mediate within 15 days of written notice. Only after this period, or if the mediator certifies in writing that the dispute is not resolved following mediation, can the parties proceed to arbitration. The mediation will occur at a mutually agreed location, or in Palo Alto, California, if no agreement is reached.
Each party is responsible for their own mediation costs, but the mediator's fees are divided equally between the parties. Mediation is not required for claims involving payment obligations more than 45 days past due, actual or threatened disclosure or misuse of confidential information, issues related to the ownership, validity, or use of the Marks or Intellectual Property, or enforcement of covenants detailed in Section 17 of the agreement. A party waives their right to mediate if they fail to respond to a written request for mediation within 15 days or do not participate in any scheduled mediation conference.
If mediation does not resolve the issue, the dispute will be settled through arbitration before the AAA under its Commercial Arbitration Rules, with the arbitration taking place before a sole arbitrator in Palo Alto, California. Similar to mediation, each party bears their own arbitration costs, while the arbitrator's fees are split equally.