Can statements made during Aira Fitness mediation be used in subsequent proceedings?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 Mandatory Mediation.Except as otherwise specifically provided herein, prior to the initiation of litigation by either party pursuant to this Agreement, the parties must make a good faith effort to resolve any controversies between them by non-binding mediation either through a mutually acceptable mediator or through an established mediation service selected by Franchisor (in either case, "Mediator"). Mediation shall take place in the McHenry County, Illinois. Prior to mediation, each party involved in mediation shall sign the standard confidentiality agreement reasonably required by Mediator or a confidentiality agreement reasonably required by Franchisor if the Mediator does not have a standard confidentiality agreement. No litigation proceeding may be commenced until the earlier of thirty (30) days from the selection of the Mediator, or the mutual agreement by both parties that mediation has been unsuccessful, or if the notified party fails to respond to the requesting party within thirty (30) days of the delivery of notice requesting mediation. The parties will share equally all fees and expenses of the mediator, and each part shall bear its own costs otherwise. Each party hereby agrees that all statements made in the course of mediation shall be strictly confidential, and shall not be disclosed to or shared with any third parties, other than the mediator. Each party also agrees that any documents or data specifically prepared for use in good faith negotiations and/or mediation shall not be disclosed to or shared with any third party except those parties whose presence is necessary to facilitate the mediation process. The parties agree not to make copies of any such documents, and to return them to the other party upon the conclusion of the mediation. Each party agrees and acknowledges that no statements made in, or evidence specifically prepared for mediation shall be admissible for any purpose in any subsequent proceedings. Notwithstanding the foregoing, Franchisor shall have no obligation to mediate claims that are the subject of Paragraph 12.2 herein.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, statements made during mediation are confidential and inadmissible in later proceedings. Specifically, Item 12.1 outlines that all statements made during mediation must be kept strictly confidential and not disclosed to third parties, except for the mediator. Documents or data prepared for mediation should also not be shared, and copies must be returned after the mediation concludes.
This means that any information shared or discussed during the mediation process cannot be used as evidence or for any other purpose in subsequent legal actions. This encourages open and honest communication during mediation, as parties can speak freely without fear of their words being used against them later. The confidentiality extends to documents and data specifically prepared for the mediation, ensuring that these materials also remain protected.
This provision aims to foster a more productive and less adversarial mediation process. By ensuring confidentiality, Aira Fitness hopes to increase the likelihood that disputes can be resolved amicably through mediation, avoiding the need for costly and time-consuming litigation. However, Aira Fitness has no obligation to mediate claims that are the subject of Paragraph 12.2, which discusses specific performance and injunctive relief.