How are the Expert's fees and costs allocated between the parties 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.
- 24.12 All matters concerning the process and result of the determination by the Expert shall be kept confidential among the parties and the Expert.
- 24.13 Each party shall act reasonably and co-operate to give effect to the provisions of this clause and otherwise do nothing to hinder or prevent the Expert from reaching his determination.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, in the event that an expert is required to make a determination, each party involved will initially bear their own costs related to seeking the expert's opinion. However, the fees charged by the expert, along with any associated costs the expert incurs to reach a decision, will be divided between the parties as directed by the expert. The expert's costs could include fees for advisors they appoint to assist in the determination.
This means that while franchisees are responsible for their own initial expenses, they may also be required to cover a portion of the expert's fees and costs. The specific allocation will be determined by the expert, introducing an element of uncertainty for franchisees. This arrangement could potentially lead to higher expenses than initially anticipated if the expert assigns a significant portion of the costs to the franchisee.
Furthermore, all details regarding the expert's determination, including the process and outcome, must be kept confidential among the parties involved and the expert. Both parties are expected to cooperate reasonably and avoid any actions that could impede the expert's ability to reach a determination. This confidentiality clause ensures discretion but also limits the franchisee's ability to openly discuss the matter.
Prospective Bevaris Alliance franchisees should consider the potential financial implications of this clause and factor in the possibility of needing to cover a portion of expert fees when evaluating the overall costs of the franchise.