Does the agreement to first attempt internal resolution of disputes survive termination or expiration of the Fitstop Franchise Agreement?

According to Fitstop's 2024 Franchise Disclosure Document, the agreement to first attempt internal resolution of disputes does indeed survive the termination or expiration of the Franchise Agreement. This means that even after the franchise relationship ends, both Fitstop and the franchisee are still obligated to try to resolve any claims or disputes internally before pursuing mediation or other legal actions.

Specifically, the franchisee must first bring any claim or dispute arising out of or related to the Franchised Business and/or the Franchise Agreement to Fitstop's management, after providing written notice. The franchisee is then required to make every commercially reasonable effort to settle the dispute internally. This internal dispute resolution procedure must be exhausted before bringing any action or claim before a third-party mediator or other adjudicating party.

This requirement to attempt internal dispute resolution even after the franchise term is over could save both parties time and money by encouraging them to find amicable solutions. However, it also means that even after the franchise ends, the franchisee may still be bound to a process controlled by Fitstop before pursuing other legal options. Franchisees should be aware of this ongoing obligation and factor it into their decision-making both during the franchise term and when considering renewal or termination.