Is pre-litigation mediation mandatory for disputes related to the Body20 franchise agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 Mandatory Pre-Litigation Mediation. Except as otherwise provided in this Section, prior to filing any proceeding to resolve any dispute based upon, arising out of, or in any way connected with this Agreement, a party must submit the dispute for mediation.
- (a) Conduct of Mediation. All parties must attend and participate in the mediation. It is the intent of the parties that mediation shall be held not later than 14 days after a written request for mediation shall have been served on the other parties. The mediation will be held before one mediator selected by the parties, and if the parties cannot agree upon the mediator, then a mediator selected by the American Arbitration Association ("AAA"). The mediation shall not last more than one day and shall be held in the metropolitan area of our thencurrent principal place of business. The mediation shall be governed by the rules of the AAA.
- (b) Post-Mediation. If we and you do not resolve our dispute, then thereafter any party may file for litigation or arbitration, as applicable in accordance with the terms of this Agreement.
- (c) Exceptions to Mediation. The obligation to mediate shall not be binding upon either party with respect to claims relating to the Marks, the non-payment or underpayment of any monies due under this Agreement, the noncompetition covenants, or requests by either party for temporary restraining orders, preliminary injunctions or other procedures in a court of competent jurisdiction to obtain interim relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, pre-litigation mediation is generally mandatory for resolving disputes related to the franchise agreement. Before initiating any legal proceedings arising from or connected to the agreement, both parties are required to submit the dispute for mediation. This means that a franchisee must attempt to resolve the issue through mediation before pursuing litigation or arbitration.
The mediation process requires all parties to attend and participate. The goal is for the mediation to occur within 14 days after a written request for mediation is served. A mediator will be selected by mutual agreement between the parties, or if they cannot agree, the American Arbitration Association (AAA) will select the mediator. The mediation is limited to one day and will take place in the metropolitan area of Body20's principal place of business. The rules of the AAA will govern the mediation.
However, there are exceptions to this mandatory mediation requirement. Body20 or the franchisee are not obligated to mediate claims relating to Body20's trademarks, non-payment or underpayment of monies owed under the agreement, non-competition covenants, or requests for temporary restraining orders, preliminary injunctions, or other interim relief sought in court to preserve the status quo or prevent irreparable harm. If mediation does not resolve the dispute, either party can then proceed with litigation or arbitration, as applicable under the terms of the franchise agreement. This ensures that certain urgent or critical matters can be addressed immediately without the delay of mediation.