How long after written notice of a dispute must mediation begin between Southern Steer and the Multi-Unit Developer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
THE MEDIATION WILL BE CONDUCTED IN ACCORDANCE WITH THE THEN-CURRENT OR SUCCESSOR CODE OF PROCEDURE.
THE MEDIATOR WILL BE APPOINTED IN ACCORDANCE WITH THE THEN-CURRENT OR SUCCESSOR CODE OF PROCEDURE UNLESS THE PARTIES AGREE ON A MEDIATOR IN WRITING WITHIN 10 DAYS AFTER EITHER PARTY GIVES WRITTEN NOTICE OF MEDIATION.
THE MEDIATOR MAY NOT BE CALLED AS A WITNESS IN ANY COURT OR ARBITRATION PROCEEDING FOR ANY PURPOSE.
EACH PARTY AGREES TO SEND AT LEAST ONE REPRESENTATIVE TO THE MEDIATION CONFERENCE WHO HAS THE AUTHORITY TO ENTER INTO BINDING CONTRACTS ON THAT PARTY'S BEHALF.
THE COST OF THE MEDIATION, INCLUDING THE MEDIATOR'S FEE AND EXPENSES, SHALL BE SPLIT EQUALLY BETWEEN FRANCHISOR AND MULTI-UNIT DEVELOPER AND/OR THE CONTROLLED ENTITY (IF ANY).
(c) Arbitration.
IF THE PARTIES CANNOT FULLY RESOLVE AND SETTLE A DISPUTE THROUGH DIRECT MEDIATION WITHIN 30 DAYS AFTER THE MEDIATION CONFERENCE CONCLUDES, ALL UNRESOLVED ISSUES INVOLVED IN THE DISPUTE (SUBJECT TO SECTION 14.4) WILL BE SUBMITTED TO BINDING ARBITRATION TO THE FORUM ON DEMAND OF EITHER PARTY.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, after either party provides written notice of mediation, the parties have 10 days to agree on a mediator in writing. If they do not agree on a mediator within that 10-day period, the mediator will be appointed according to the then-current or successor code of procedure.
The mediation itself will be conducted in accordance with the then-current or successor code of procedure. If the parties cannot fully resolve the dispute through direct mediation within 30 days after the mediation conference concludes, the unresolved issues will be submitted to binding arbitration.
This means that a prospective Southern Steer multi-unit developer should be prepared to engage in mediation relatively quickly after a dispute arises. They should also be aware of the potential for arbitration if mediation is unsuccessful. The cost of the mediation, including the mediator's fees and expenses, will be split equally between Southern Steer and the multi-unit developer.