During the Applicable Notice Period, what action are both parties expected to take regarding the dispute with Fitstop?

According to Fitstop's 2024 Franchise Disclosure Document, during the Applicable Notice Period, both parties are expected to attempt to resolve the matter internally per Section 19.1 of the agreement. This period begins after the franchisee submits a notice to Fitstop detailing the nature and grounds of the claim or dispute, as required by Section 19.6. Fitstop then has 30 days to decide whether to exercise its right to mediate the dispute.

This internal resolution process, as outlined in Section 19.1, requires the franchisee to first bring the claim or dispute to Fitstop's management after providing written notice. Both parties are then expected to make commercially reasonable efforts to settle the dispute internally. This step must be exhausted before either party can proceed to third-party mediation or other adjudicating bodies.

This initial attempt at internal dispute resolution is a mandatory step before further action can be taken. It reflects a common practice in franchising, where franchisors often prefer to resolve disputes internally to maintain relationships and avoid costly legal battles. However, it's important to note that this internal process does not guarantee a resolution, and if unsuccessful, the parties may proceed to mediation or other legal avenues as outlined in the agreement.