Under what circumstances related to intellectual property, warranties, or restrictive covenants is mediation not required for Kidokinetics franchise disputes?

According to Kidokinetics's 2024 Franchise Disclosure Document, mediation is not required in certain dispute scenarios. Specifically, Kidokinetics franchisees are not obligated to participate in mediation if the dispute involves allegations that a party has violated or threatens to violate federally protected intellectual property rights related to the Kidokinetics marks, the Kidokinetics system, or any confidential information. This means Kidokinetics aims to protect its brand and proprietary information by allowing immediate legal action in cases of potential infringement.

Additionally, mediation is not required for claims pertaining to or arising out of any warranty issue. This suggests that Kidokinetics prefers to handle warranty-related disputes through other channels, possibly due to the specific nature and potential urgency of such claims.

Finally, disputes concerning the restrictive covenants contained in the Franchise Agreement also do not require mandatory mediation, subject to applicable state law. Restrictive covenants typically include clauses that prevent franchisees from competing with Kidokinetics during and after the franchise term, so Kidokinetics appears to prioritize direct legal recourse to enforce these provisions. In any of these three scenarios, Kidokinetics reserves the right to pursue legal action without first attempting mediation, which is a deviation from the standard practice of encouraging mediation to resolve disputes before resorting to litigation.