Where will mediation be conducted for disputes involving Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Mediation must take place before the dispute initiating party can file any demand for arbitration or complaint. Both parties will sign a confidentiality agreement reasonably satisfactory to both parties. The parties will conduct the mediation in Broward County, Florida. Each party will bear his, her or its own costs for the mediation and each party will pay 50% of Forum's fees and the mediator's fee. If a dispute initiating party refuses to mediate the dispute, the dispute initiating party cannot file any demand for arbitration or complaint involving the matter in dispute. If the other party refuses to mediate, the other party has waived mediation and the dispute initiating party may immediately file a demand for arbitration or a complaint.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, mediation will be conducted in Broward County, Florida. This is part of the dispute resolution process outlined in the franchise agreement. Before initiating arbitration or a formal complaint, both Stretch Zone and the franchisee must participate in non-binding mediation.
The mediation process involves a mediator who is a member of FORUM Arbitration, Mediation International, or another mediator mutually agreed upon by both parties. Both parties are required to sign a confidentiality agreement. Each party is responsible for their own costs associated with the mediation, and they will split the fees charged by FORUM and the mediator equally.
This requirement to mediate in Broward County, Florida, has practical implications for franchisees, potentially increasing their expenses if they are located outside of Florida. If a party refuses to participate in the mediation process, they may forfeit their right to pursue arbitration or file a complaint. Franchisees should factor in potential travel and legal costs associated with mediation when evaluating the franchise opportunity.