Can Fitstop specifically enforce its option and right to mediate?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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, Fitstop has the right to specifically enforce its option to mediate. This means that Fitstop can legally compel a franchisee to participate in mediation if a dispute arises.
Mediation is a process where a neutral third party helps the franchisee and Fitstop reach a mutually agreeable resolution. Each party is responsible for their own mediation costs, but they will equally share the mediator's fees. This agreement to mediate survives any termination or expiration of the Franchise Agreement.
However, there are exceptions where mediation is not required. Fitstop is not obligated to mediate if the dispute involves allegations of violations or imminent threats to violate federally protected intellectual property rights, restrictive covenants within the agreement, or the franchisee's payment obligations. In these specific cases, Fitstop can pursue other legal avenues without first going through mediation.