Do the dispute resolution provisions of the Fly To Fit Franchise Agreement apply to the MUDA?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7. Dispute Resolution; Miscellaneous. The laws of the State of New York (without giving effect to its principles of conflicts of law) govern all adversarial proceedings between the parties. The parties agree that any New York law for the protection of franchisees or business opportunity purchasers will not apply unless its jurisdictional requirements are met independently without reference to this Section 7. Franchisee shall not Transfer this MUDA without the prior written consent of Fly To Fit Franchise, and any Transfer without Fly To Fit Franchise's prior written consent shall be void. The provisions of Article 17 (Dispute Resolution) and Article 18 (Miscellaneous) of the Franchise Agreement apply to and are incorporated into this MUDA as if fully set forth herein.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the dispute resolution provisions outlined in the Franchise Agreement are applicable to the Multi-Unit Development Agreement (MUDA). Specifically, Article 17, which covers dispute resolution, and Article 18, which addresses miscellaneous matters within the Franchise Agreement, are incorporated into the MUDA.
This incorporation means that any disputes arising from the MUDA will be subject to the same dispute resolution process detailed in the Franchise Agreement. This process likely includes steps such as mediation or arbitration, as is common in franchise agreements, before resorting to litigation. The laws of the State of New York govern all adversarial proceedings between the parties, unless New York law for the protection of franchisees or business opportunity purchasers jurisdictional requirements are met independently.
For a prospective Fly To Fit franchisee, this means understanding the dispute resolution process in the Franchise Agreement is crucial, as it will also govern the MUDA. Franchisees should carefully review Articles 17 and 18 of the Franchise Agreement to understand their rights and obligations regarding dispute resolution under the MUDA. This includes knowing the procedures for initiating a dispute, the location of arbitration or mediation, and the governing laws.