Does the Kidokinetics Franchise Agreement contain a mediation provision?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement contains provisions requiring binding arbitration with the costs being awarded to the prevailing party. The arbitration will occur in Florida. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of the Franchise Agreement or Supplemental Agreements restricting venue to a forum outside the State of California. The Franchise Agreement contains a mediation provision. The parties shall each bear their own costs of mediation and shall share equally the filing fee and the mediator's fees.
The Franchise Agreement requires the application of the law of the State of Florida. This provision may not be enforceable under California law.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Franchise Agreement does contain a mediation provision. In the event of a dispute, Kidokinetics and the franchisee would be required to attempt to resolve the issue through mediation before pursuing other legal avenues. The FDD specifies that each party is responsible for their own costs associated with mediation, and they will equally share the filing fee and the mediator's fees.
This mediation provision means that prospective Kidokinetics franchisees should be prepared to engage in a formal mediation process if a dispute arises with the franchisor. Understanding the costs associated with mediation, such as filing fees and mediator fees, is also important for budgeting and financial planning. Franchisees should also be aware that they will bear their own legal costs during the mediation process.
Furthermore, the FDD notes that the Franchise Agreement also contains provisions requiring binding arbitration, with the costs being awarded to the prevailing party, and that the arbitration will occur in Florida. It also states that the Franchise Agreement requires the application of the law of the State of Florida, which may not be enforceable under California law. Prospective franchisees are encouraged to consult with legal counsel to determine the applicability of California and federal laws to any provisions of the Franchise Agreement or Supplemental Agreements restricting venue to a forum outside the State of California.