Under whose auspices will mediation occur for Kidokinetics disputes?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
19.2. Mediation. At Franchisor's option, all claims or disputes between Franchisee and Franchisor or its affiliates arising out of, or in any way relating to, this Agreement or any other agreement by and between Franchisee and Franchisor or its affiliates, or any of the parties' respective rights and obligations arising from such agreements, which are not first resolved through the internal dispute resolution procedure set forth in Section 19.1 above, must be submitted first to non-binding mediation, in Davie, Florida or the Greater Miami Area under the auspices of the American Arbitration Association ("AAA"), in accordance with AAA's Commercial Mediation Rules then in effect. Before commencing any legal action against Franchisor or its affiliates with respect to any such claim or dispute, Franchisee must submit a notice to Franchisor, which specifies, in detail, the precise nature and grounds of such claim or dispute. 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. Franchisee may not commence any action against Franchisor or its affiliates with respect to any such claim or dispute in any court unless Franchisor fails to exercise its option to submit such claim or dispute to mediation, or such mediation proceedings have been terminated either: (i) as the result of a written declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as a result of a written declaration by Franchisor. Franchisor's rights to mediation, as set forth herein, may be specifically enforced by Franchisor. Each party will bear its own cost of mediation and Franchisee and Franchisor will share mediation costs equally. This agreement to mediate will survive any termination or expiration of this Agreement. The parties agree that there will be no class action mediation. The parties will not be required to first attempt to mediate a controversy, dispute, or claim through mediation as set forth in this
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, any claims or disputes between a franchisee and Kidokinetics that are not resolved internally must first be submitted to non-binding mediation. This mediation will take place in Davie, Florida, or the Greater Miami Area. The mediation will be conducted under the auspices of the American Arbitration Association (AAA), following AAA's Commercial Mediation Rules that are in effect at that time.
Before starting any legal action against Kidokinetics, a franchisee must send a notice detailing the claim or dispute. Kidokinetics then has 30 days to decide whether to submit the issue to mediation. The franchisee cannot take legal action unless Kidokinetics declines mediation or the mediation is terminated, either by the mediator's declaration that further efforts are not worthwhile or by Kidokinetics's written declaration.
Kidokinetics retains the right to enforce mediation specifically. Each party is responsible for their own mediation costs, and the franchisee and Kidokinetics will share the overall mediation costs equally. This agreement to mediate survives any termination or expiration of the Franchise Agreement. Class action mediations are not permitted.
This clause is fairly standard in franchise agreements, as mediation is often seen as a cost-effective first step before more expensive litigation. Franchisees should be aware of the location specified for mediation (Davie, Florida, or the Greater Miami Area) as it may require travel and associated expenses.