Who bears the costs related to the reference to the Expert for Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 24.11 Each party shall bear its own costs in relation to the reference to the Expert. The Expert's fees and any costs properly incurred by the Expert in arriving at the determination (including any fees and costs of any advisers appointed by the Expert) shall be borne by the parties as the Expert shall direct.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, each party involved in a dispute referred to an expert bears their own costs related to the reference. This means that Bevaris Alliance and the franchisee will each be responsible for their individual expenses incurred during the expert consultation.
However, the fees charged by the expert, along with any costs the expert incurs to reach a determination, including fees for advisors they appoint, will be borne by the parties as directed by the expert. This allocation of the expert's fees is determined by the expert themselves, and the parties must adhere to that decision.
This arrangement is fairly standard in franchising, where both parties often share the burden of dispute resolution. It is important for prospective Bevaris Alliance franchisees to understand that while they are responsible for their own direct costs, they may also be required to cover a portion of the expert's fees, depending on the expert's decision. This could potentially lead to unexpected expenses during the franchise term.