At whose option is mediation required for unresolved claims, controversies, or disputes with Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
At Franchisor's option, any claim, controversy, or dispute that is not resolved pursuant to Section 20.1 hereof shall be submitted to non-binding mediation.
Franchisee shall provide Franchisor with written notice of Franchisee'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 Franchisee'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.
Such mediation shall take place in the then-current location of Franchisor's corporate headquarters.
The costs and expenses of mediation, including compensation and expenses of the mediator (and except for the attorneys' fees incurred by either party), shall be borne by the parties equally.
Franchisor may specifically enforce Franchisor's rights to mediation, as set forth herein.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, mediation is required at the Franchisor's option for any unresolved claim, controversy, or dispute. Before commencing any legal action, a franchisee must provide Fly Fitness with written notice detailing the nature of the issue. Fly Fitness then has thirty days following receipt of the franchisee's notice to exercise its option to submit the matter to mediation.
The mediation process will be conducted through a mediator, or mediators, following the American Arbitration Association Commercial Mediation Rules. The location for such mediation will be at Fly Fitness's corporate headquarters at that time.
The costs and expenses associated with mediation, excluding attorneys' fees, will be equally shared between Fly Fitness and the franchisee. Fly Fitness retains the right to specifically enforce its rights to mediation as outlined in the agreement. This means that while the franchisee can initiate the dispute resolution process, Fly Fitness ultimately decides whether mediation is the appropriate next step before legal action can be pursued.