Does the agreement to mediate survive termination or expiration of the Fitstop Franchise Agreement?

According to Fitstop's 2024 Franchise Disclosure Document, the agreement to mediate survives any 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 attempt mediation for certain disputes. Each party is responsible for their own costs of mediation, while the fees for the mediator are equally shared between Fitstop and the franchisee.

However, there are exceptions to this mediation requirement. Fitstop and the franchisee are not required to first attempt mediation if the dispute involves allegations of violating federally protected intellectual property rights in the Proprietary Marks, System, or Confidential Information, violations of restrictive covenants in the agreement, or the franchisee's payment obligations under the agreement. In these specific cases, Fitstop can seek injunctive relief in court.

This clause ensures that certain disputes, even after the franchise agreement concludes, are addressed through mediation, potentially saving both parties time and legal expenses. However, it's important to note the exceptions where Fitstop can pursue immediate legal action, particularly concerning intellectual property, restrictive covenants, and payment obligations. Prospective franchisees should carefully consider these provisions and understand the circumstances under which mediation is required versus when Fitstop may directly pursue legal remedies.