Who bears the other expenses relating to the arbitration of a Bath Tune Up franchise dispute?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) All issues relating to arbitrability or the enforcement of the agreement to arbitrate contained in this Section 11 will be governed by the Federal Arbitration Act (9 U.S.C. 1 et seq.) and the federal common law of arbitration. All hearings and other proceedings will take place in Brown County, South Dakota, or if Franchisor so elects, in the county where the principal place of business of Franchisee is then located. The fees of the arbitrator will be borne equally by Franchisor and Franchisee, and all other expenses relating to the arbitration will be borne by the party incurring them.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, in the event of arbitration, the fees of the arbitrator will be equally split between Bath Tune Up and the franchisee. However, all other expenses associated with the arbitration process will be the responsibility of the party that incurs them. This means that each party will bear its own costs for things like legal representation, expert witnesses, travel, and document preparation.
This arrangement is fairly standard in franchise agreements, as it ensures that both parties have a vested interest in controlling their own costs during the arbitration. It also encourages both parties to approach the arbitration process reasonably and efficiently, as they are directly responsible for managing their expenses.
For a prospective Bath Tune Up franchisee, this means that while the cost of the arbitrator is shared, they should be prepared to cover all other expenses related to the arbitration. These costs can potentially be significant, depending on the complexity of the dispute and the length of the arbitration process. It would be prudent to factor in potential legal and arbitration costs when assessing the overall financial risks and benefits of investing in a Bath Tune Up franchise.