How long does Kidokinetics have to notify a franchisee whether it elects to submit a claim or dispute to mediation?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor will have a period of 30 days following receipt of such notice within which to notify Franchisee whether Franchisor or its affiliates elects to exercise its option to submit such claim or dispute to mediation.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, if a franchisee submits a notice of a claim or dispute, Kidokinetics has 30 days to notify the franchisee whether it will exercise its option to submit the claim or dispute to mediation. The mediation would occur under the American Arbitration Association's Commercial Mediation Rules in Davie, Florida, or the Greater Miami Area.
This means that a franchisee must wait at least 30 days after providing notice of a dispute before commencing any legal action against Kidokinetics. This waiting period allows Kidokinetics to decide whether it prefers to attempt to resolve the issue through mediation, which is a non-binding process.
The franchisee bears the cost of their own mediation expenses, while the franchisee and Kidokinetics will share the mediation costs equally. This clause ensures that both parties have an opportunity to resolve disputes outside of court, potentially saving time and legal expenses. However, if mediation is unsuccessful, the franchisee is then free to pursue legal action.