Who is responsible for the mediator's fees in Bft's mediation process?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
ternal dispute resolution process described in this Section.
- C. Mediation.Except as provided in Section 12.E below, the Parties agree to submit any claim or dispute that they are unable to resolve informally, as described in Section 12.B above, to mediation to be conducted by JAMS using its then-current mediation rules and procedures (see www.jamsadr.com/mediation) and to take place at Franchisor's or, as applicable, Franchisor's successor's or assign's, then-current principal place of business (currently, Irvine, California), or via a videoconferencing platform, if both Parties agree. Each Party will bear its own costs in participating in the mediation, and Franchisor and Developer will share JAMS' and the mediator's fees and costs equally. Neither Party will be required to mediate for more than one (1) day.
- D.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the costs of mediation are shared between the franchisor and the developer (franchisee). Each party is responsible for their own costs related to participating in the mediation. However, the fees and costs charged by JAMS (Judicial Arbitration and Mediation Services) and the mediator are to be split equally between Bft and the franchisee.
This arrangement means that a prospective Bft franchisee will need to budget for their own internal costs, such as attorney fees and preparation, as well as half of the mediator's fees. This is a fairly standard arrangement in franchising, as it ensures both parties have a vested interest in reaching a resolution during mediation.
Mediation is limited to one day, according to the FDD. This encourages efficiency and cost control. The mediation will be conducted by JAMS, utilizing their established rules and procedures, and will take place at Bft's principal place of business in Irvine, California, or via videoconference if both parties agree.