Who bears the costs of participating in mediation for Bft disputes?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Party will bear its own costs in participating in the
mediation, and Franchisor and Franchisee will share JAMS' and the mediator's fees and costs equally. Neither Party will be required to mediate for more than one (1) day.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, when disputes arise and proceed to mediation, each party is responsible for covering their own costs. This means that the franchisee will pay their own legal fees, travel expenses, and any other costs they incur while participating in the mediation process.
In addition to each party bearing their own costs, the FDD states that Bft and the franchisee will equally share the fees and costs associated with JAMS (Judicial Arbitration and Mediation Services) and the mediator. JAMS is a private provider of mediation and arbitration services. This cost-sharing arrangement applies specifically to the fees charged by JAMS and the mediator, ensuring that neither party is solely burdened with these expenses.
The mediation process is limited to a maximum of one day, according to the FDD. This limitation helps to control costs and encourages both parties to efficiently work towards a resolution. By clearly outlining the cost responsibilities for mediation, Bft provides transparency and helps franchisees understand the financial implications of dispute resolution.