How are the mediation fees and costs split between the parties in an Alloy dispute?

According to Alloy's 2025 Franchise Disclosure Document, both parties involved in a mediation dispute will equally share the costs. Specifically, each party is responsible for paying fifty percent (50%) of the total mediation fees and all associated costs.

This arrangement means that a franchisee and Alloy will each bear an equal financial burden for the mediation process. This includes the mediator's fees, administrative costs, and any other expenses directly related to conducting the mediation. This equal split of costs is a common practice in franchise agreements, as it encourages both parties to approach the mediation process seriously and with the intent to find a resolution.

It is important to note that this cost-sharing arrangement applies specifically to mediation. If the dispute proceeds to arbitration or litigation, the allocation of costs may be different, potentially following the 'prevailing party pays' rule as described elsewhere in the FDD. Franchisees should carefully consider these potential costs when evaluating the risks and benefits of investing in an Alloy franchise.