Who bears the costs of mediation in a Beef O Bradys dispute?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
Each party will bear its own costs and expenses of conducting the mediation and share equally the cost of any third parties who are required to participate.
Nevertheless, both you and we have the right in a proper case to obtain temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction without first seeking mediation.
However, the parties must immediately and contemporaneously submit the dispute for non-binding mediation.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, in the event of a dispute requiring mediation, each party is responsible for covering their own costs and expenses related to conducting the mediation. This includes legal representation, preparation of documents, and any other costs incurred directly by the party. The cost of any third parties involved in the mediation process will be shared equally between Beef O Bradys and the franchisee.
This arrangement means that a franchisee entering mediation with Beef O Bradys will need to budget for their own expenses, regardless of the outcome of the mediation. While splitting the cost of a third-party mediator is a common practice, franchisees should be aware that their internal costs could still be significant, depending on the complexity of the dispute and the length of the mediation process.
It's also important to note that despite the mediation requirement, both Beef O Bradys and the franchisee retain the right to seek temporary restraining orders or injunctive relief from a court without first engaging in mediation. However, even in such cases, the parties are expected to immediately submit the dispute for non-binding mediation, indicating that mediation is still a required step in resolving disputes.