How are the costs of mediation split between the parties in an Amerispec Inspection Services dispute?

According to the 2025 Amerispec Inspection Services Franchise Disclosure Document, if a dispute arises and informal negotiation fails, the parties involved must submit to non-binding mediation. All parties are required to attend and participate in this mediation, which will be governed by the rules of the American Arbitration Association (AAA). The mediator will be selected by the parties, or by the AAA if the parties cannot agree. The mediation is intended to be held within 30 days of a written request and will take place in the metropolitan area of Amerispec Inspection Services' principal place of business, which is currently Memphis, Tennessee. Unless the parties agree otherwise, the mediation should not last more than one day.

An important aspect of this mediation process is the allocation of costs. The FDD clearly states that the parties will split the cost of any mediation equally. This means that both Amerispec Inspection Services and the franchisee will each bear 50% of the expenses associated with the mediation, which can include mediator fees and administrative costs. Each party has the right to be represented by counsel and, with the mediator's permission, may bring relevant individuals to the proceeding.

This cost-sharing arrangement is a fairly standard practice in franchise mediation, as it encourages both parties to approach the process seriously and work towards a resolution. It prevents one party from being financially burdened by the entire cost of mediation, which could discourage them from participating. If mediation is unsuccessful, the dispute must then proceed to binding arbitration, highlighting the importance of mediation as a cost-effective initial step in resolving conflicts.