What happens if Fitstop fails to exercise its option to submit a claim or dispute to mediation?
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, if a franchisee has a claim or dispute against Fitstop and provides written notice, Fitstop has 30 days to decide whether to exercise its right to mediate. If Fitstop fails to exercise its option to submit the claim or dispute to mediation, the franchisee is then permitted to commence legal action against Fitstop and/or its affiliates.
Prior to this, the franchisee must first attempt to resolve the issue internally with Fitstop's management. This internal dispute resolution must be exhausted before involving a third-party mediator or other adjudicating party. The location for mediation, if Fitstop chooses to mediate, will be at Fitstop's corporate headquarters.
This clause ensures that franchisees are not indefinitely আটকে from pursuing legitimate grievances, while still providing Fitstop an opportunity to resolve disputes through less formal and potentially more cost-effective means. Franchisees should be aware of the specific notification procedures and timelines to protect their rights.