In the event of a conflict between the American Arbitration Association's commercial mediation procedures and the Jersey Mikes agreement, which document controls?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
THE PARTIES AGREE TO CONDUCT THE MEDIATION IN ACCORDANCE WITH THE THEN CURRENT COMMERCIAL MEDIATION PROCEDURES OF THE AMERICAN ARBITRATION ASSOCIATION (THE "AAA"), EXCEPT TO THE EXTENT THE RULES CONFLICT WITH THIS AGREEMENT, IN WHICH CASE THIS AGREEMENT SHALL CONTROL.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, the franchise agreement takes precedence over the American Arbitration Association's (AAA) commercial mediation procedures in case of a conflict. This means that if there is any discrepancy between the rules of the AAA and the terms outlined in the Jersey Mikes franchise agreement, the terms of the franchise agreement will govern the mediation process.
This clause is significant for prospective franchisees because it clarifies the legal framework that will be used in the event of a dispute requiring mediation. While the AAA's procedures are generally followed, the Jersey Mikes agreement ensures that specific terms agreed upon within the franchise contract are upheld. This could cover aspects such as the scope of mediation, the selection of a mediator, or any other procedural elements.
For a potential Jersey Mikes franchisee, understanding this clause is crucial. It highlights the importance of carefully reviewing the franchise agreement and understanding all its terms, as these will take precedence over standard mediation rules. Franchisees should seek legal counsel to fully grasp the implications of this clause and how it might affect dispute resolution.