Who bears the costs of mediation for a Belocal franchise dispute?

According to Belocal's 2025 Franchise Disclosure Document, in the event of a mediation, both the complainant and the respondent will bear their own costs. They will also each bear one-half of the cost of the mediator or mediation service. This means that a Belocal franchisee involved in a dispute requiring mediation will be responsible for their legal fees and half of the mediator's fees.

This arrangement is a fairly standard practice in franchising. It ensures that neither party is unduly burdened by the costs of mediation, encouraging participation in the process. By splitting the mediator's costs, both Belocal and the franchisee have a financial incentive to reach a resolution efficiently.

It is important to note that this cost-sharing arrangement applies specifically to mediation. If the dispute proceeds to arbitration or litigation, the allocation of costs and fees may be different, potentially shifting the burden to the losing party as detailed elsewhere in the FDD.