How are the fees and expenses of the mediator shared between the parties in a dispute involving the Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The prevailing party in any action or proceeding arising under, out of, in connection with, or in relation to this Agreement or other dispute between the parties, any lease or sublease for the Aira Fitness Business or Authorized Location, or the business will be entitled to recover its reasonable attorneys' fees and costs.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the document does not specify how the fees and expenses of a mediator are shared between the parties. The FDD mentions that any dispute must be submitted to binding arbitration under the Federal Arbitration Act and arbitrated per the American Arbitration Association rules.
However, the FDD does outline that the prevailing party in any action or proceeding arising from the franchise agreement, lease, or business will be entitled to recover reasonable attorneys' fees and costs. This suggests that while mediation costs are not explicitly addressed, the general principle is that the party who wins a dispute is entitled to have their legal costs covered.
A prospective Aira Fitness franchisee should seek clarification from the franchisor regarding the specific procedures and cost-sharing arrangements for mediation, as this is not detailed in Item 23. Understanding these details is crucial for assessing the potential financial risks associated with dispute resolution.