According to what rules will the mediation be conducted for Fitstop disputes?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| s. Modification of the agreement | Sections 5.2, 20.4 | No modifications generally except by written agreement, but we may change the Operations Manuals and Franchise System standards at any time. You will be required to implement these changes at your own cost. |
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| t. Integration/merger clause | Section 20.2 | Only the terms of the Franchise Agreement (including the Operations Manuals) are binding (subject to state law). Any other promises may not be enforceable. No claim made in any franchise agreement is intended to disclaim the express representations made in this Franchise Disclosure Document. |
| u. Dispute resolution by arbitration or mediation | Section 19.1.1 | You must submit any disputes, claims and/or causes of action you have arising out of or related to the Franchise Agreement to our management for review and subsequent discussions regarding the same, and you agree to attempt to resolve any such matters internally prior to submitting any such matter to mediation. |
| Section 19.1.2 | We have the irrevocable right to submit all matters that are not resolved via internal dispute resolution procedures set forth in the Franchise Agreement to non-binding mediation that will be conducted at Franchisor's then-current headquarters and in accordance with the Commercial Mediation Rules promulgated by the AAA. We will have 30 days from the date we receive written notice of any dispute or claim to advise Franchisee in writing that we will be exercising our right to submit this matter to mediation. | |
| v. Choice of forum | 19.4 | Except as otherwise provided in this Chart, any dispute or claim arising out of or related to the Franchise Agreement must be initiated and brought only in the federal or state court encompassing – or closest to – Los Angeles, California. Both parties irrevocably submit to the jurisdiction of such courts, subject to the IDP and mediation provisions set forth above. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–47)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if internal dispute resolution fails, Fitstop has the right to submit disputes to non-binding mediation. This mediation will take place at Fitstop's headquarters.
The mediation will be conducted following the Commercial Mediation Rules established by the American Arbitration Association (AAA). This means that the mediation process, including the selection of the mediator, the exchange of information, and the conduct of the mediation sessions, will adhere to the AAA's established guidelines for commercial disputes.
It is important to note that the mediation is non-binding, meaning that while both parties will participate in an attempt to resolve the dispute, neither party is obligated to accept the outcome proposed by the mediator. If mediation is unsuccessful, the franchisee may need to pursue other legal avenues, such as litigation, to resolve the dispute. Any litigation must be initiated in the federal or state court encompassing or closest to Los Angeles, California.