How long should internal mediation last before submitting a dispute for arbitration with Healthsource Chiropractic?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Except insofar as we elect to enforce this Agreement or to seek temporary or permanent injunctive relief as provided in Section 14 of this Agreement, before either party commences an arbitration under this Section, the parties agree that, as a condition precedent to the filing or commencement of any arbitration, they will attempt to resolve any dispute through internal mediation between the parties to be conducted in a mutually agreeable location or, if no such location is agreed upon within 10 days after a request for mediation, then at our corporate headquarters.
In the event that no settlement or resolution between the parties can be reached through internal mediation within thirty (30) days following the date on which a written request for internal mediation is made by any party, such dispute shall be submitted for arbitration pursuant to this Section. "Internal mediation" shall consist of, among other things, the parties having reasonable business discussions, whether by telephone or in person, concerning the dispute and means of resolving the same.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic FDD, before commencing arbitration, both parties must attempt to resolve any dispute through internal mediation. This mediation should occur in a mutually agreed-upon location, or at Healthsource Chiropractic's corporate headquarters if no location is agreed upon within 10 days of the mediation request.
The internal mediation period should last for thirty (30) days following the date of a written request for internal mediation. If no settlement is reached within this timeframe, the dispute can then be submitted for arbitration. Internal mediation involves reasonable business discussions, either by telephone or in person, to explore ways of resolving the dispute.
This process is a condition precedent to filing or starting any arbitration, unless Healthsource Chiropractic seeks to enforce the agreement or pursue injunctive relief. This means franchisees must engage in this internal mediation process in good faith before moving forward with a formal arbitration claim. Failing to adhere to this requirement could delay or negatively impact a franchisee's ability to resolve disputes with Healthsource Chiropractic through arbitration.