Franchise Mediation Model Clauses

National Franchise Mediation Program

Pre-Dispute Clause

The parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by confidential mediation under the CPR Franchise Mediation Program, before resorting to arbitration or litigation.

Franchise Arbitration Program

FRANCHISE

STANDARD CONTRACTUAL PROVISIONS

The International Institute for Conflict Preventi on and Resolution Rules for Non-Administered Arbitration of Franchise Disputes ("Rules") are intended for use in disputes between franchisors and franchisees and are offered as an alternative to administered arbitration procedures offered by arbitration service providers. The Rules are designed to assure the expeditious and economical conduct of proceedings. The Rules may be adopted by parties wishing to do so by using one of the following standard contract provisions:

A. Pre-Dispute Clause

"Any dispute arising out of or relating to this contract, including the breach, termination or validity thereof, shall be finally resolved by arbitration in accordance with the International Institute for Conflict Prevention and Resolution Rules for Non-Administered Arbitration of Franchise Disputes by [a sole arbitrator] [three arbitrators, of whom each party shall appoint one pursuant to Rules 5.1 and 5.2] [three arbitrators, of whom each party shall designate one in accordance with the "screened" appointment procedure provided in Rule 5.4] [three arbitrators, none of whom shall be appointed by either party]. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq., and judgment upon the award rendered by the arbitrator(s) may be entered by any court having jurisdiction thereof. The place of the arbitration shall be (city, state)."

B. Existing Dispute Submission Agreement

"We, the undersigned parties, here by agree to submit to arbitration in accordance with the International Institute tor Conflict Prevention and Resolution Rules for Non-Administered Arbitration of Franchise Disputes (the "Rules") the following dispute:

[Describe briefly)

We further agree that the above dispute shall be submitted to [a sole arbitrator] [three arbitrators, of whom each party shall appoint one pursuant to Rules 5.1 and 5.2] [three arbitrators, of whom each party shall designate one in accordance with the "screened" appointment procedure provided in Rule 5.4] [three arbitrators, none of whom shall be appointed by either party]. We further agree that we shall faithfully observe this agreement and the Rules and that we shall abide by and perform any award rendered by the arbitrator(s). The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq., and judgment upon the award may be entered by any court having jurisdiction thereof. The place of arbitration shall be (city, state)."

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