How are the mediator's fees divided between the parties in a Beggars Pizza Agreement mediation?

According to the 2025 Beggars Pizza Franchise Disclosure Document, in the event that mediation is required, the fees of the mediator will be divided equally between Beggars Pizza and the franchisee. Each party is responsible for covering their own additional costs associated with the mediation.

It is important to note that mediation is not required for certain types of claims or disputes. These exceptions include any claim involving a franchisee's payment obligation that is more than 45 days past due, claims involving the disclosure or misuse of confidential information, disputes related to the ownership or use of Beggars Pizza's proprietary marks, claims involving insurance or indemnification provisions, and actions by Beggars Pizza to enforce specific covenants within the agreement.

This arrangement is fairly standard in franchising, where both parties typically share mediation costs to encourage good-faith participation. However, the franchisee should be aware of the specific situations where mediation is not required, as this could lead to quicker legal action in those cases.