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A. During all disputes arising under a franchise, the city and franchisee shall continue performance of their respective obligations under a franchise unless and until the franchisee is terminated for default, in which case the franchisee’s obligation to pay a franchise fee based on cash receipts generated from services provided under the franchise during said dispute shall survive such termination.

B. If any disputes, disagreements, or controversies arise between the parties pertaining to the interpretation, validity, or enforcement of a franchise, the city and the franchisee shall, upon the request of either party, submit such dispute to binding arbitration under the Oregon Uniform Arbitration Act, ORS 36.600 et seq. Arbitration shall be requested by delivering to the other party a written request for arbitration. Within five days of receipt of such request, the parties shall select a mutually agreeable arbitrator and designate mutually agreeable rules of arbitration. If the parties cannot agree upon an arbitrator within five days, an arbitrator may be appointed by the presiding judge of the Jackson County circuit court, upon the request of either party submitted in accordance with ORS 36.645. If the parties have not designated mutually agreeable rules of arbitration at such time as the arbitrator is appointed, the arbitrator shall adopt rules for the arbitration. The arbitrator’s decision shall be final and binding upon the parties.

C. 

Attorney’s Fees. If suit, action or arbitration is brought either directly or indirectly to rescind, reform, interpret or enforce the terms of a franchise agreement, the prevailing party shall recover and the losing party hereby agrees to pay reasonable attorney’s fees incurred in such proceeding, in both the trial and appellate courts, as well as the costs and disbursements. Such costs and fees shall bear interest at the maximum legal rate from the date incurred until the date paid by the losing party. [Ord. 872 § 8.9, 2014.]