How are the mediator fees split between Fitstop and the franchisee?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Each Party will bear its own cost of mediation, with you and us equally sharing the mediator fees.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, in the event that mediation is pursued to resolve a dispute, the costs of the mediator are split equally between Fitstop and the franchisee. Each party is responsible for covering their own additional costs associated with the mediation process.
This arrangement means that a franchisee would only be responsible for 50% of the mediator's fees, which could be beneficial in managing expenses during a dispute. However, it's important to note that this cost is in addition to any legal fees or other expenses the franchisee might incur while preparing for and participating in the mediation.
It is also important to note that Fitstop's option and right to mediate may be specifically enforced by them. Furthermore, the requirement to mediate does not apply to disputes involving intellectual property rights, restrictive covenants, or the franchisee's payment obligations.