Before initiating a lawsuit or arbitration, where must mediation take place for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
13. DISPUTE RESOLUTION
13.1 Governing Law. The parties agree that the execution of this Agreement and the acceptance of its terms occurred in the state of Texas. The parties further agree that the performance of material obligations arising under the Agreement, including but not limited to, your payment of monies due hereunder, shall occur in the state of Texas. Accordingly, subject to our rights under federal trademark laws and the parties' rights under the Federal Arbitration Act in accordance with Section 13.2, this Agreement, the parties' rights under this Agreement, and the relationship between the parties under this Agreement are governed by, and will be interpreted in accordance with, the laws (statutory and otherwise) of the state of Texas (excluding any conflicts of laws principles).
13.2 Mediation, Litigation and Arbitration.
a. Mediation. Before any party may bring an action in court or against the other, or commence an arbitration proceeding (except as noted in Section 13.2b below), the parties must first meet to mediate the dispute. The mediation will be held in McLennan County, Texas. Any such mediation shall be non-binding and shall be conducted by the American Arbitration Association (the "AAA") in accordance with its then-current rules for mediation of commercial disputes unless the parties
agree otherwise in writing. The mediator will be appointed in accordance with the rules and regulations of the AAA unless the parties agree on a mediator in writing within 10 days after either party gives written notice of mediation. The mediation hearing will be held within 20 days after the mediator has been appointed. Each party will bear its own costs and expenses for the mediation and will be responsible to pay 50% of the mediator's costs and expenses.
- b.
Exceptions to Mediation.
Notwithstanding Section 13.2a. or any other provision of this Agreement, the parties agree that the following claims will not be subject to mediation and may be brought in any court of competent jurisdiction, subject to Sections 13.1 and 13.2c:
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to the 2025 FDD, before a franchisee can initiate a lawsuit or arbitration against Precision Door Service, the parties involved must first attempt to resolve the dispute through mediation. This mediation is required to take place in McLennan County, Texas.
The mediation process will be conducted under the guidelines of the American Arbitration Association (AAA), utilizing their then-current rules for commercial dispute mediation, unless both Precision Door Service and the franchisee agree to a different set of rules in writing. The mediator will be selected according to AAA's rules, unless both parties can agree on a mediator within 10 days after a written notice of mediation is given.
The mediation hearing itself must be scheduled within 20 days after the mediator's appointment. Each party is responsible for covering their own costs and expenses related to the mediation, and they will each pay 50% of the mediator's fees and expenses. However, there are exceptions to this mediation requirement, as certain claims can be brought directly to a court of competent jurisdiction without first undergoing mediation.