Is mediation binding or non-binding for disputes with Fly Fitness that are not resolved internally?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
resident and/or chief executive officer for resolution. After providing notice as set forth in Section 12.7 below. Developer must exhaust this internal dispute resolution procedure before Developer may bring Developer's dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
- 10.2 Mediation. At Franchisor's option, any claim, controversy, or dispute that is not resolved pursuant to Section 10.1 hereof shall be submitted to non-binding mediation. Developer shall provide Franchisor with written notice of Developer's intent to pursue any unresolved claim, controversy or dispute, specifying in sufficient detail the nature thereof, prior to commencing any legal action. Franchisor shall have thirty (30) days following receipt of Developer's notice to exercise Franchisor's option to submit such
claim, controversy or dispute to mediation. Mediation shall be conducted through a mediator or mediators in accordance with the American Arbitration Association Commercial Mediation Rules.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, mediation is non-binding. Specifically, if a claim, controversy, or dispute is not resolved internally with Fly Fitness's president and/or chief executive officer, Fly Fitness has the option to submit the matter to non-binding mediation.
Prior to commencing any legal action, the franchisee must provide Fly Fitness with written notice of their intent to pursue any unresolved claim, controversy, or dispute, detailing the nature of the issue. Fly Fitness then has thirty (30) days following receipt of the franchisee's notice to exercise its option to submit the dispute to mediation.
The mediation itself will be conducted through a mediator or mediators in accordance with the American Arbitration Association Commercial Mediation Rules and will take place at Fly Fitness's corporate headquarters. The costs and expenses of mediation, excluding attorneys' fees, will be shared equally between Fly Fitness and the franchisee. Fly Fitness retains the right to specifically enforce its rights to mediation.