What is a Fitstop franchisee prohibited from doing before the completion of mediation proceedings?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Before commencing any legal action against us and/or our affiliates with respect to any such claim or dispute, you must submit a notice to us that specifies in detail the precise nature and grounds of such claim or dispute per Section 19.6 below.
W e will then have a period of 30 days following receipt of such notice within which to notify you as to whether we and/or our affiliates are exercising the right to mediate under this Section (the "Applicable Notice Period").
During the Applicable Notice Period, both parties will attempt to resolve the matter internally per Section 19.1 above.
You may and must not commence any action against us or our affiliates with respect to any claim or dispute in any court, unless and until: (i) we fail to exercise its option to submit such claim or dispute to mediation; or (ii) such mediation proceedings have been terminated either (a) as the result of a written declaration of the mediator(s) that further mediation efforts are not worthwhile, or (b) as a result of a written declaration by us.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee is restricted from commencing any legal action against Fitstop or its affiliates regarding any claim or dispute in any court until certain conditions are met.
Specifically, a Fitstop franchisee must first submit a detailed notice specifying the nature and grounds of the claim or dispute. Following this notice, Fitstop has 30 days to decide whether to exercise its right to mediate the issue. During this period, both parties are expected to attempt to resolve the matter internally.
The franchisee can only initiate legal action if Fitstop chooses not to mediate or if the mediation proceedings conclude without a resolution. Termination of mediation can occur either through a written declaration from the mediator stating that further efforts are not worthwhile or through a written declaration from Fitstop itself. This process ensures that disputes are first addressed through internal channels and mediation before escalating to legal action.