Is mediation administered by the American Arbitration Association required for Jersey Mikes disputes?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
SIGNATED TERRITORY IS LOCATED, THEN SUCH PROVISION SHALL BE INTERPRETED AND CONSTRUED UNDER THE LAWS OF THAT STATE. NOTHING IN THIS SECTION 17 IS INTENDED BY THE PARTIES TO SUBJECT THIS AGREEMENT TO ANY FRANCHISE OR SIMILAR LAW, RULE, OR REGULATION OF THE STATE OF NEW JERSEY TO WHICH IT WOULD NOT OTHERWISE BE SUBJECT.
- EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE MAKING, PERFORMANCE, BREACH, OR INTERPRETATION OF THIS AGREEMENT, EXCEPT FOR ANY ACTIONS BROUGHT WITH RESPECT TO: I) OWNERSHIP OR USE OF THE MARKS; II) SECURING INJUNCTIVE RELIEF PURSUANT TO SECTION 17.6 OF THIS AGREEMENT; III) ANY COVENANT LISTED WITHIN SECTION 9 OR CONDITIONS WITHIN SECTION 7 OF THIS AGREEMENT; IV) THE RIGHT TO INDEMNIFICATION OR THE MANNER IN WHICH IT IS EXERCISED: SHALL FIRST BE THE SUBJECT OF AN INFORMAL MEETING BETWEEN THE PARTIES TO RESOLVE THE DISPUTE AND THEN SUBJECT TO NON-BINDING MEDIATION. 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. HOWEVER, THE MEDIATION NEED NOT BE ADMINISTERED BY THE AAA UNLESS THE PARTIES CANNOT AGREE UPON THE SELECTION OF A MEDIATOR WITHIN THIRTY (30) DAYS OF THE RECEIPT OF THE WRITTEN NOTICE OF MEDIATION. IF THE PARTIES CANNOT REACH AGREEMENT UPON THE SELECTION OF A MEDIATOR, EITHER PARTY MAY COMMENCE A MEDIATION PROCEEDING BY MAKING A REQUEST FOR MEDIATION TO THE AAA REGIONAL OFFICE CLOSEST TO MONMOUTH COUNTY, NEW JERSEY, WITH A COPY TO THE OTHER PARTY. THE WRITTEN REQUEST FOR MEDIATION SHALL DESCRIBE WITH SPECIFICITY THE NATURE OF THE DISPUTE AND THE RELIEF SOUGHT. BOTH PARTIES ARE OBLIGATED TO ENGAGE IN THE MEDIATION.
THE MEDIATION WILL BE CONDUCTED BY A SINGLE MEDIATOR WITH NO PAST OR PRESENT AFFILIATION OR CONFLICT WITH ANY PARTY TO THE MEDIATION. THE PARTIES AGREE THAT THE MEDIATOR SHALL BE D ISQUALIFIED AS A WITNESS, EXPERT, CONSULTANT OR ATTORNEY IN ANY PENDING OR SUBSEQUENT PROCEEDING RELATING TO THE DISPUTE WHICH IS THE SUBJECT OF THE MEDIATION. IN THE EVENT THE PARTIES CANNOT AGREE ON A MEDIATOR AND THE AAA ADMINISTERS THE MEDIATION, THE AAA SHALL PROVIDE THE PARTIES WITH A LIST OF MEDIATORS WILLING TO SERVE.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, mediation does not necessarily have to be administered by the American Arbitration Association (AAA). The FDD states that any claim or controversy related to the agreement must first be subject to an informal meeting and then non-binding mediation.
The document specifies that the parties should conduct mediation following the American Arbitration Association's commercial mediation procedures. However, the mediation does not need to be administered by the AAA unless the parties cannot agree on a mediator within thirty (30) days after receiving written notice of mediation. If an agreement on a mediator cannot be reached, either party can start mediation by requesting it from the AAA regional office closest to Monmouth County, New Jersey, while also providing a copy to the other party.
If the AAA administers the mediation because the parties could not agree on a mediator, the AAA will provide a list of mediators. The parties then have ten (10) days to agree on a mediator from that list. If no agreement is reached within those ten (10) days, the AAA will appoint the mediator. The fees and expenses of the AAA (or other administrator) and the mediator's fee will be shared equally between the parties, while each party bears its own attorney's fees and other costs.