MEDIATION

FAM charges a one-time administrative processing fee of $1,000 for mediation (involving a single mediator). FAM referred mediators have agreed to charge an hourly rate not to exceed $500 for FAM-referred matters (typically this fee is split between the parties). After receipt of the fee and either (i) a Demand for Mediation (if there is a clause in the franchise (or other) agreement between the disputants which names FAM as the forum to handle the mediation) or (ii) a Submission Agreement (if FAM is not named as mediation forum in the agreement between the parties), FAM will poll its panel of referral mediators situated in the general vicinity of the designated venue for the mediation for potential conflicts. FAM mediators are typically well known transactional attorneys with more than 10 years of franchise law experience. After this screening is complete, FAM will nominate and forward to the attorneys for the disputants the name of an eligible, referral mediator including brief resume.

Unless a party to the dispute objects in writing, the matter will be referred to the mediator nominated by FAM. The selected mediator to whom FAM refers the matter will contact the parties (or their attorneys) and make arrangements to collect a retainer and proceed in accordance with FAM's Mediation Guidelines. The mediator typically collects an additional retainer before each subsequent day of proceedings. When the matter is concluded, any remaining retainer will be promptly refunded.

MEDIATOR'S DUTIES

1. To determine the issues in dispute.
2. To confirm the location of the mediation proceeding and to settle the procedures to be followed and the law governing the mediation.
3. To establish a timetable for each step in the process to be taken to ensure completion of the mediation in the shortest time possible.
4. To allow each disputant to make a statement in the presence of the other disputants. Then the parties are separated and the mediator discusses the issues with each disputant in an effort to build consensus (starting with the least contentious issues) toward a comprehensive settlement.

MEDIATOR'S QUALIFICATIONS

• Must have not less than 10 years of experience as a professionally trained mediator, franchise transactional attorney (having represented or counseled both franchisors and franchisees), or franchising executive;
• Has a duty to the public to act faithfully in support of the mediation process as a means of facilitating the administration of justice;
• Will at all times from his or her appointment until the publication of his award act independently, fairly and impartially between the parties; and
• Will not solicit a specific appointment for himself or herself as a mediator but may indicate a general willingness to serve as a mediator.

MEDIATION SETTLEMENT

The mediator will summarize the agreements arrived at in order to facilitate the preparation by counsel for the disputing parties of a written settlement agreement between the parties.

Unless the dispute is resolved through the mediation and a comprehensive settlement agreement has been entered into between the disputing parties, within 20 business days after conclusion of the mediation, presuming all fees have been paid, the mediator will release to each disputant a written summary of the mediation, and agreements arrived at.

Please use the appropriate form in "View Forms" to initiate alternative dispute resolution proceedings before FAM.