Who is responsible for covering the cost of the mediator in 1 800 Packouts mediation?

According to 1 800 Packouts' 2025 Franchise Disclosure Document, the cost of the mediator is equally split between each party involved in the mediation. This means that the franchisee and 1 800 Packouts will each pay 50% of the mediator's fees. Each party is also responsible for their own costs associated with attending the mediation, such as travel, accommodation, and attorney fees.

This arrangement is fairly standard in the franchise industry, as it ensures that both parties have a vested interest in resolving the dispute efficiently and cost-effectively. By sharing the cost of the mediator, both 1 800 Packouts and the franchisee are incentivized to negotiate in good faith and reach a mutually agreeable solution. This can help to avoid the more expensive and time-consuming process of arbitration or litigation.

It is important for prospective 1 800 Packouts franchisees to understand this cost-sharing arrangement, as it will impact their financial obligations in the event of a dispute with the franchisor. While mediation is intended to be a less formal and costly alternative to litigation, the expenses can still add up, especially if the mediation process is prolonged or requires multiple sessions. Franchisees should factor these potential costs into their overall budget and seek legal counsel to understand their rights and obligations in the event of a dispute.