What specific restrictive covenants are protected from the mediation requirement in a Fitstop dispute?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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, franchisees are not required to attempt mediation for disputes involving violations, threatened violations, or imminent risk of violations of certain protected areas. Specifically, this exception applies to federally protected intellectual property rights in the Proprietary Marks, System, or Confidential Information, as well as other intellectual property rights associated with them.
In addition to intellectual property, the exception to mediation also extends to any of the restrictive covenants contained within the Franchise Agreement itself. This means Fitstop can directly pursue legal action to enforce these covenants without first going through mediation.
Finally, the mediation requirement does not apply to any of the franchisee's payment obligations under the Franchise Agreement. Fitstop can immediately pursue legal remedies to ensure franchisees meet their financial responsibilities without being held up by mandatory mediation.