Where must mediation take place for disputes related to a Management Recruiters franchise agreement?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or 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.
Arbitration will take place in Berkeley County, South Carolina, and shall be governed by the laws of the State of South Carolina.
All fees associated with the arbitration shall be equally shared by the Franchisor and Franchisee.
Parties will be entirely responsible for their own attorney's fees.
Any and all claims brought under this Section shall be commenced within one (1) year from the time the aggrieved party first becomes aware of or reasonably should be aware of the occurrence of the facts giving rise to such claim or action, or such claim or action shall be barred.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the location for arbitration or mediation concerning a franchise purchased in Washington will be in the state of Washington, or a location mutually agreed upon during the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. This condition applies specifically to franchises governed by Washington law.
For all other franchise agreements, arbitration will take place in Berkeley County, South Carolina, and shall be governed by the laws of the State of South Carolina. This means that unless the franchise is in Washington or there is a mutual agreement to a different location, franchisees may be required to travel to South Carolina to resolve disputes through arbitration.
It is important to note that all claims must be commenced within one year from when the aggrieved party becomes aware of the facts giving rise to the claim. Franchisees are also responsible for their own attorney's fees, while fees associated with the arbitration itself will be equally shared between Management Recruiters and the franchisee. Franchisees should be aware of these location-specific requirements and time constraints when considering a Management Recruiters franchise.