For C3 Wellness Spa, what is the required first step in resolving disputes, before arbitration or litigation?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. Non-competition covenants during the term of the franchise | 6 | No involvement in any competitive business and must comply with confidentiality, non-disclosure and non- solicitation covenants. |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | 6, 17.E. | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Designated territory; a 25 mile radius of your Designated territory; a 25 mile radius of the Designated Territory of any other Spa Location Franchise; and you must comply with confidentiality, non-disclosure and non-solicitation covenants. |
| s. Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral changes that we may make to the Manuals or our unilateral reduction of the scope of a restrictive covenant that we may make in our discretion. |
| t. Integration/merger clauses | 18.M. | Any representations or promises outside of the Franchise Disclosure Document and other agreements may not be enforceable. Nothing in any agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, its exhibits and amendments. |
| u. Dispute resolution by arbitration or mediation | 18.G. | Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Osceola County, Florida and, if mediation is unsuccessful, then to binding arbitration in Osceola County, Florida. This provision is subject to applicable state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2024 FDD)
According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the initial step for resolving disputes, before moving to arbitration or litigation, is non-binding mediation. Specifically, all disputes, with the exception of certain claims for injunctive relief, must first be submitted to non-binding mediation in Osceola County, Florida.
This means that if a franchisee has a dispute with C3 Wellness Spa, they are obligated to attempt to resolve it through mediation before pursuing more formal legal avenues like arbitration or litigation. Mediation involves a neutral third party who helps facilitate a discussion between the franchisee and franchisor to reach a mutually agreeable resolution.
It is important to note that this mediation is non-binding, meaning that neither party is forced to accept the mediator's suggestions or any proposed settlement. However, it is a mandatory first step in the dispute resolution process. If mediation is unsuccessful, the parties can then proceed to binding arbitration in Osceola County, Florida. This provision is subject to applicable state law, so franchisees should be aware of any state-specific regulations that may affect this process.