How are the fees and expenses of the mediator shared between the parties in a dispute involving Aw franchise?

According to Aw's 2025 Franchise Disclosure Document, in the event of a dispute requiring mediation, the fees and expenses of the mediator are to be shared equally between Aw and the franchisee. This applies prior to initiating arbitration or litigation, where both parties are expected to make a good faith effort to resolve controversies through non-binding mediation. The mediator can be either mutually agreed upon or selected by Aw through an established mediation service.

This arrangement means that a franchisee will be responsible for half of the mediator's fees and expenses, which can include hourly rates, travel costs, and other associated charges. Before mediation begins, both parties must sign a confidentiality agreement, either the mediator's standard agreement or one required by Aw.

This requirement to share mediation costs equally is a fairly standard practice in franchising, as it encourages both parties to engage in the mediation process seriously. However, franchisees should be aware of these potential costs and factor them into their financial planning. If mediation is unsuccessful, the franchisee may then face additional costs associated with arbitration or litigation, so it is important to attempt to resolve disputes at the mediation stage to avoid further expenses.