What are the two ways mediation proceedings can be terminated in a Fitstop dispute?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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, mediation proceedings can be terminated in one of two ways. First, the proceedings can end if the mediator(s) issue a written declaration stating that further mediation efforts are not worthwhile. This suggests that if the mediator believes no progress is being made or that the parties are too far apart to reach an agreement, they can formally end the mediation.
Second, Fitstop itself can issue a written declaration to terminate the mediation proceedings. This gives Fitstop the power to end mediation even if the mediator believes it could still be productive. This clause potentially favors Fitstop, as they have the unilateral ability to halt the process.
For a prospective franchisee, this means that while mediation is required, Fitstop has significant control over how long it lasts. A franchisee should consider this when evaluating the dispute resolution process and understand that Fitstop can end mediation at any time with a written declaration, potentially leading to further legal action.