What costs of mediation are each party responsible for in a Beggars Pizza dispute?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties will each bear all of their own costs of mediation; provided, however, the fees of the mediator will be divided equally between the parties.
The parties hereto agree that mediation will not be required with respect to (a) any claim or dispute involving any payment obligation of Franchisee that is more than forty-five (45) days past due, (b) any claim or dispute involving actual or threatened disclosure or misuse of any Confidential Information, (c) any claim or dispute involving the ownership, validity, or use of the Proprietary Marks, (d) any claim or dispute involving the insurance or indemnification provisions of the Agreement, or (e) any action by Franchisor to enforce the covenants set forth in Section 17.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, in the event of mediation, both the franchisee and franchisor bear their own costs. However, the fees for the mediator are divided equally between the two parties. This arrangement is typical in franchise agreements, as it ensures both parties have a vested interest in resolving the dispute efficiently.
This means that a prospective Beggars Pizza franchisee should be prepared to cover their own legal and consulting fees, travel expenses, and any other costs they incur while participating in the mediation process. They will also be responsible for half of the mediator's fees, which can vary depending on the mediator's experience and the complexity of the case.
It's important to note that mediation is not required for certain types of claims or disputes, such as those involving payment obligations more than 45 days past due, the disclosure or misuse of confidential information, issues related to the Proprietary Marks, insurance or indemnification provisions, or actions by Beggars Pizza to enforce specific covenants. In these cases, either party may pursue other legal remedies without first engaging in mediation.