Where must mediation take place for disputes related to the Management Recruiters agreement?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
- 22.9. Mediation. Except as precluded by applicable law, prior to instituting any suit or action in arbitration or a court of law, any controversy or claim that arises out of or relates to this Agreement, or any breach of this Agreement, including, without limitation, any claim that any of this Agreement is invalid, illegal, voidable or void, shall be submitted to mediation in Goose Creek, South Carolina, as voluntary non-binding mediation, to be conducted in accordance with the process set forth in the South Carolina Circuit Court Alternative Dispute Resolution Rules or any similar successor rules.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
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 occur in Goose Creek, South Carolina. This mediation is voluntary and non-binding. The process should align with 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 related to the franchise agreement, both parties must attempt to resolve the issue through mediation before starting arbitration or a lawsuit. The mediation must take place in Goose Creek, South Carolina, regardless of where the franchisee's office is located. This could involve travel expenses for the franchisee.
The FDD specifies that the mediation will be non-binding, meaning that neither party is forced to accept the outcome of the mediation. If mediation is unsuccessful, the franchisee can then pursue arbitration or litigation, if those options are not precluded by the franchise agreement. Franchisees should be aware of this requirement and factor in the potential costs and time associated with traveling to Goose Creek, South Carolina for mediation.