If internal dispute resolution fails, where will mediation take place for Kidokinetics disputes?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| u. Dispute resolution by arbitration or mediation | Section 19.2 | You must first bring any claim that is between us to the attention of our management. You must first exhaust our internal dispute resolution procedures before you may bring your dispute before a third party. The requirement that you must first attempt to resolve disputes internally will survive the termination or expiration of your term. At our option, any disputes and claims that are not resolved by internal dispute resolution must, at our option, be submitted to mediation. The mediation will take place in Broward County, Florida before the American Arbitration Association ("AAA") in accordance with the AAA's Commercial Mediation Rules then in effect. You must notify us, with details of your claim or dispute, before commencing any legal action against us or our affiliates. Once we receive your notice, we will have 30 days to notify you as to whether we or our affiliates elect to exercise the option to submit the matter to mediation. You may not commence any action against us or our affiliates regarding any claim or dispute in any court unless we fail to exercise our option to submit the claim or dispute to mediation, or such mediation proceedings have been terminated under certain circumstances. This agreement to mediate will survive any termination or |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if internal dispute resolution fails, any disputes or claims not resolved internally may be submitted to mediation at Kidokinetics's option. The mediation will occur in Broward County, Florida, facilitated by the American Arbitration Association (AAA) and following the AAA's Commercial Mediation Rules.
This means that as a prospective Kidokinetics franchisee, if a dispute arises with the franchisor that cannot be resolved through internal procedures, Kidokinetics has the option to require mediation. If they choose this route, you would need to travel to Broward County, Florida, regardless of where your franchise is located. This could involve significant travel expenses and time away from your business.
The FDD specifies that you must notify Kidokinetics with details of your claim before starting any legal action. Kidokinetics then has 30 days to decide whether to submit the matter to mediation. You cannot take legal action unless Kidokinetics declines mediation or the mediation is terminated under certain circumstances. This agreement to mediate survives any termination or expiration of the franchise agreement.
This mandatory mediation clause, particularly the location in Broward County, Florida, is a critical point for potential franchisees to consider. It gives Kidokinetics significant control over the dispute resolution process and could create a financial and logistical burden for franchisees located far from Florida. Franchisees should factor these potential costs and inconveniences into their decision to invest in a Kidokinetics franchise.