For Southern Steer, what is the obligation of each party regarding representation at the mediation conference?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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 FRANCHISEE.
- (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 22.4) WILL BE SUBMITTED TO BINDING ARBITRATION TO THE FORUM ON DEMAND OF EITHER PARTY.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, both the franchisor and the franchisee must send at least one representative to the mediation conference. This representative must have the authority to enter into binding contracts on behalf of their respective party. This requirement ensures that any agreements reached during mediation can be immediately formalized and enacted.
This stipulation is significant because it emphasizes the importance Southern Steer places on resolving disputes efficiently and effectively through mediation. By requiring representatives with full contractual authority, Southern Steer aims to streamline the negotiation process and avoid delays that might arise if the representatives had to seek approval from higher authorities before making any commitments.
Furthermore, the FDD states that the cost of the mediation, including the mediator's fees and expenses, will be split equally between Southern Steer and the franchisee. This cost-sharing arrangement encourages both parties to participate actively and constructively in the mediation process, as they both have a financial stake in reaching a resolution. If the parties cannot resolve the dispute through mediation within 30 days after the mediation conference concludes, the unresolved issues will be submitted to binding arbitration.