Are Bft franchisees responsible for their own costs during mediation?

According to Bft's 2025 Franchise Disclosure Document, each party participating in mediation is responsible for their own costs. Bft and the developer will equally share the fees and costs associated with JAMS (Judicial Arbitration and Mediation Services) and the mediator. There is no requirement for either party to mediate for more than one day.

This means that if a dispute arises and mediation is pursued, a prospective Bft franchisee will need to budget for their own legal and consulting fees, travel, and any other expenses they incur while preparing for and attending the mediation. However, they will not be responsible for covering the mediator's fees or JAMS' costs, as those will be split between Bft and the developer.

This arrangement is fairly typical in franchising, where both parties usually bear their own costs related to dispute resolution. However, the agreement to split the mediator's fees is a potentially favorable term for Bft franchisees, as it reduces their financial burden in the event of a dispute. Franchisees should be aware of the potential costs associated with mediation and factor them into their financial planning.