Does the agreement to attempt internal dispute resolution with Fitstop survive the termination or expiration of the Franchise Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You must first bring any claim or dispute arising out of or related to the Franchised Business and/or this Agreement to our management after you have provided us with written notice as prescribed in Section 19.6 of this Agreement, and subsequently make every commercially reasonable effort to settle any such dispute or claim internally.
You must exhaust this internal dispute resolution procedure before bringing any action or claim before a third-party mediator or other adjudicating party.
This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the agreement to first attempt internal dispute resolution survives the termination or expiration of the Franchise Agreement. Specifically, before a franchisee can pursue any claim or dispute with a third-party mediator or other adjudicating party, they must first bring the issue to Fitstop's management and make commercially reasonable efforts to settle it internally.
This requirement to exhaust internal dispute resolution procedures remains in effect even after the Franchise Agreement has been terminated or has expired. This means that even after the formal business relationship ends, both Fitstop and the franchisee are still obligated to attempt to resolve disputes internally before resorting to mediation or legal action.
This clause ensures that both parties continue to attempt amicable resolutions, potentially saving time and money on legal fees, even after the franchise relationship concludes. However, it's important to note that this survival clause does not specify the duration for which it remains in effect, so a former franchisee should clarify with Fitstop how long after termination this obligation continues.