Are both parties obligated to engage in mediation for Jersey Mikes disputes?

According to Jersey Mikes's 2025 Franchise Disclosure Document, both the franchisee and franchisor are obligated to engage in mediation to resolve disputes. The FDD specifies that any claim or controversy related to the agreement must first be subject to an informal meeting between the parties and then to non-binding mediation, before other legal actions can be pursued. This obligation applies to both parties involved in the franchise agreement.

The mediation process, as outlined in the FDD, requires both parties to engage in good faith. The mediation should be conducted following the American Arbitration Association's (AAA) commercial mediation procedures, unless those rules conflict with the franchise agreement, in which case the agreement prevails. The parties are expected to select a mediator, but if they cannot agree within thirty days of receiving a written notice of mediation, either party can request the AAA to commence mediation proceedings.

This mediation is to occur in Monmouth County, New Jersey, regardless of which party initiates it, and the mediator will choose a suitable location. Each party must provide a written summary of their position to the mediator at least seven days before the first session. While mediation is required, it is not a condition that must be met before starting other legal actions like arbitration, if permitted under the agreement. Also, Jersey Mikes's right to terminate the agreement is not deferred or suspended by the mediation process.

This clause ensures that both Jersey Mikes and its franchisees attempt to resolve disputes amicably through mediation before resorting to more costly and time-consuming legal proceedings. However, it's important to note that certain actions, such as those related to the ownership or use of trademarks or requests for injunctive relief, are exempt from this mediation requirement.