How long does Fitstop have to notify a franchisee whether it will exercise its right to mediate?
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, they must first send a notice to Fitstop detailing the issue. Fitstop then has 30 days after receiving this notice to inform the franchisee whether they will exercise their right to mediate. This 30-day period is referred to as the "Applicable Notice Period." During this time, both parties are expected to attempt to resolve the issue internally.
This means that a Fitstop franchisee must wait at least 30 days after providing notice of a dispute before they can proceed with legal action. This waiting period allows Fitstop the opportunity to decide if it wants to pursue mediation as a means of resolving the dispute.
The franchisee cannot commence any legal action against Fitstop until Fitstop either declines to mediate or the mediation proceedings are terminated. Termination can occur if the mediator declares that further efforts are not worthwhile or if Fitstop makes a written declaration to that effect. This process is designed to encourage dispute resolution through mediation before resorting to litigation.