factual

Before bringing a claim or dispute to a third party, what internal dispute resolution procedure must a Kidokinetics franchisee exhaust?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 19.1. Internal Dispute Resolution. Franchisee must first bring any claim or dispute between Franchisee and Franchisor to Franchisor's President. Franchisee must exhaust this internal dispute resolution procedure before Franchisee may bring Franchisee's dispute before a third party. This agreement to first attempt resolution of disputes internally will survive termination or expiration of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee must first bring any claim or dispute with Kidokinetics to the attention of Kidokinetics's President. This internal dispute resolution procedure must be exhausted before the franchisee can take the dispute to a third party. This requirement to attempt internal resolution survives the termination or expiration of the Franchise Agreement.

This means that if a Kidokinetics franchisee has a disagreement with the franchisor, whether it's about fees, operational issues, or any other aspect of the franchise agreement, they are obligated to first try to resolve it directly with the Kidokinetics President. This step is mandatory before pursuing any other form of legal action or dispute resolution with an outside party.

The requirement for internal dispute resolution is a fairly common practice in franchising. It is designed to encourage open communication and problem-solving between the franchisee and franchisor. By mandating this initial step, Kidokinetics aims to foster a more collaborative relationship with its franchisees and potentially resolve issues quickly and efficiently, without resorting to costly and time-consuming legal battles. Franchisees should be prepared to document their attempts at internal resolution, should further action become necessary.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.