At whose option is mediation required for disputes between a Kidokinetics franchisee and franchisor?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ill survive termination or expiration of this Agreement.
- 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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, mediation is required at the franchisor's option for disputes between a franchisee and Kidokinetics. Before starting any legal action against Kidokinetics, a franchisee must first send a notice detailing the claim or dispute. Kidokinetics then has 30 days to decide whether to submit the dispute to non-binding mediation.
This mediation, if elected by Kidokinetics, would take place in Davie, Florida, or the Greater Miami Area, under the rules of the American Arbitration Association (AAA). The franchisee cannot take legal action unless Kidokinetics declines mediation or the mediation is terminated by the mediator or Kidokinetics. Kidokinetics retains the right to enforce mediation specifically.
Each party is responsible for their own mediation costs, but the general mediation costs are shared equally between Kidokinetics and the franchisee. This agreement to mediate survives the termination or expiration of the Franchise Agreement, and class action mediations are not permitted. This means that even after the franchise relationship ends, the mediation clause remains in effect for disputes arising from the agreement.