Does the agreement to mediate survive the termination or expiration of the Fitstop Franchise Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
This agreement to mediate will survive any termination or expiration of this Agreement.
The Parties will not be required to first attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 19.2 ifsuch controversy, dispute, or claim concerns an allegation that a Party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, System, or in any Confidential Information or other intellectual property rights associated with the same; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under 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 mediate survives any termination or expiration of the Franchise Agreement. This means that even after the franchise agreement ends, either through termination or expiration of its term, both Fitstop and the franchisee are still obligated to attempt mediation for unresolved disputes.
Mediation is a process where a neutral third party helps facilitate a discussion to resolve disputes. However, there are exceptions where mediation is not required. Fitstop is not required to mediate a controversy, dispute, or claim if it concerns an allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, System, or in any Confidential Information or other intellectual property rights associated with the same; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
This survival clause ensures that certain dispute resolution mechanisms remain in place even after the formal agreement has ended, which can be beneficial for resolving lingering issues without immediately resorting to litigation. It is important for prospective franchisees to understand which types of disputes are subject to mandatory mediation and which are not, as this can significantly impact the dispute resolution process.