What is the dependency between Section 19.1 and Section 19.6 in the Fitstop Franchise Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.1 Internal Dispute Resolution. 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, Section 19.1 of the Franchise Agreement, which deals with internal dispute resolution, is dependent on Section 19.6. Specifically, if a Fitstop franchisee has a claim or dispute related to the Franchised Business or the Franchise Agreement, they must first provide Fitstop with written notice as prescribed in Section 19.6 before bringing the claim to Fitstop's management for internal resolution.
This means that a franchisee cannot initiate the internal dispute resolution process outlined in Section 19.1 without first adhering to the written notice requirements detailed in Section 19.6. The franchisee is obligated to make commercially reasonable efforts to settle the dispute internally before pursuing mediation or other legal actions. This initial step of providing written notice is a prerequisite for engaging in internal dispute resolution.
This requirement to provide written notice before initiating internal dispute resolution is a standard practice in franchising, allowing the franchisor an opportunity to address concerns and potentially resolve disputes before they escalate. For a prospective Fitstop franchisee, this highlights the importance of understanding the specific requirements for providing written notice under Section 19.6, as failure to comply could delay or impede their ability to resolve disputes with Fitstop through the internal process.