What is the first step Fitstop franchisees must take when a dispute arises related to the Franchised Business or the Franchise Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Section 19: Disputes and Dispute Resolution
- 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, if a dispute arises related to the Franchised Business or the Franchise Agreement, the franchisee must first bring the claim or dispute to Fitstop's management. The franchisee must provide Fitstop with written notice as prescribed in Section 19.6 of the agreement and subsequently make every commercially reasonable effort to settle the dispute internally.
This internal dispute resolution procedure must be exhausted before the franchisee can bring any action or claim before a third-party mediator or other adjudicating party. This requirement to first attempt internal resolution survives any termination or expiration of the Franchise Agreement.
This process requires a Fitstop franchisee to engage with the franchisor directly to attempt to resolve any issues before seeking external resolution through mediation or legal action. While this may save time and money if the dispute is resolved internally, it could also delay the process if internal efforts are unsuccessful. Franchisees should be aware of the specific notice requirements and ensure they document all efforts to resolve the dispute internally.