In the event of a controversy or claim related to the Management Recruiters agreement, where must mediation take place?

According to Management Recruiters' 2024 Franchise Disclosure Document, mediation for any controversy or claim that arises out of or relates to the Franchise Agreement, or any breach of the agreement, must be submitted to mediation in Goose Creek, South Carolina. This mediation is voluntary and non-binding and will be conducted in accordance with the process set forth in the South Carolina Circuit Court Alternative Dispute Resolution Rules or any similar successor rules.

This means that if a Management Recruiters franchisee has a dispute with the franchisor, they will be required to participate in mediation in Goose Creek, South Carolina before instituting any suit or action in arbitration or a court of law. This could involve travel expenses for the franchisee to attend the mediation. However, if the franchise was purchased in Washington, the mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.

Mediation is a common first step in resolving franchise disputes, as it provides an opportunity for both parties to attempt to reach a mutually agreeable solution before incurring the expenses of arbitration or litigation. The fact that the mediation is non-binding means that either party can choose to reject the outcome of the mediation and proceed to arbitration or litigation. Franchisees should be aware of this requirement and factor in the potential costs and time commitment associated with mediation when evaluating the Management Recruiters franchise opportunity.