Where will mediation take place for disputes between Fitstop and its franchisees?
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.
The Parties will not be required to first attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 19.2 ifsuch controversy, dispute, or claim concerns an allegation that a Party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, System, or in any Confidential Information or other intellectual property rights associated with the same; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, mediation between Fitstop and its franchisees will take place at Fitstop's corporate headquarters. The mediation will be conducted under the auspices of the American Arbitration Association (AAA), following AAA's Commercial Mediation Rules.
Before initiating any legal action against Fitstop, a franchisee must first submit a detailed written notice outlining the nature and grounds of the claim or dispute. Fitstop then has 30 days to decide whether to exercise its right to mediate. During this period, both parties are expected to attempt to resolve the issue internally.
A franchisee cannot commence any legal action unless Fitstop declines mediation or the mediation proceedings are terminated. Termination can occur either through a written declaration from the mediator stating that further efforts are unproductive or through a written declaration from Fitstop itself. Each party will bear its own costs of mediation, while the fees of the mediator will be shared equally between Fitstop and the franchisee.
It's important to note that this mediation agreement survives any termination or expiration of the Franchise Agreement. However, mediation is not required for disputes involving violations of federally protected intellectual property rights, restrictive covenants, or the franchisee's payment obligations.