Who is responsible for the Expert's fees and costs in a Bevaris Alliance expert determination?

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 the reference to the expert. However, the responsibility for the expert's fees and any costs they incur while reaching a determination, including fees and costs for any advisors the expert appoints, will be determined by the expert. The expert has the authority to direct how these fees and costs are divided between the parties. This means that a Bevaris Alliance franchisee may be responsible for some or all of the expert's fees, depending on the expert's decision.

This arrangement gives the expert significant control over the financial burden of the determination process. It is important to note that the expert's decision is final and binding, absent manifest error or fraud. This underscores the importance of carefully considering the implications of agreeing to expert determination as a dispute resolution method. Franchisees should be aware that they could potentially bear a significant portion of the expert's fees and costs, which could be substantial depending on the complexity of the issue and the expert's hourly rate.

In summary, while each party initially covers their own costs, the ultimate allocation of the expert's fees and associated costs is at the discretion of the expert. This arrangement could create a financial risk for Bevaris Alliance franchisees, as they may be required to pay a portion, or all, of the expert's fees. Franchisees should factor this potential expense into their assessment of the franchise opportunity and consider seeking legal counsel to fully understand their rights and obligations in the event of a dispute requiring expert determination.