If Fitstop elects mediation, where will the mediation take place?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.2 Mediation. At our option, all claims or disputes between you and us (and/or our affiliates) arising out of, or in any way relating to, this Agreement or any other agreement by and between such parties, or any of the parties' respective rights and obligations arising from such agreement, which are not first resolved through the internal dispute resolution procedure sent forth in Section 19.1 above, will be submitted first to mediation to take place at our then-current corporate headquarters under the auspices of the American Arbitration Association ("AAA"), in accordance with AAA's Commercial Mediation Rules then in effect.
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.
Our option and right to mediate as set forth herein may be specifically enforced by us.
Each Party will bear its own cost of mediation, with you and us equally sharing the mediator fees.
This agreement to mediate will survive any 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 between Fitstop and a franchisee that cannot be resolved internally, Fitstop has the option to require mediation. This mediation will take place at Fitstop's corporate headquarters under the rules of the American Arbitration Association (AAA).
Before starting any legal action against Fitstop, the franchisee must send Fitstop a notice detailing the dispute. Fitstop then has 30 days to decide whether to exercise their right to mediate. During this period, both parties will continue to try and resolve the issue internally.
The franchisee cannot start a lawsuit unless Fitstop does not choose to mediate, or the mediation ends without a resolution. Both parties will cover their own mediation costs, but will equally share the mediator's fees. This mediation agreement remains in effect even after the franchise agreement ends.