How are the fees and expenses of the mediator shared between the parties in a Bhc dispute?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
The fees and expenses of the mediator will be shared equally by the parties.
The mediator will be disqualified as a witness, expert, or counsel for any party with respect to the Dispute and any related matter.
- (c) Mediation is a compromise negotiation and will constitute privileged communications under the law governing this Agreement.
The entire mediation process will be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and the parties will not be discoverable or admissible in any legal proceeding for any purpose; provided, however, that evidence which is otherwise discoverable or admissible will not be excluded from discovery or admission because of its use in the mediation.
The fees charged by a mediator and any other related fees and costs will be divided equally between the parties.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, when disputes arise and are submitted to mediation, the fees and expenses of the mediator, along with any other related fees and costs, are divided equally between Bhc and the franchisee. This applies to both disputes involving franchisees and master franchisees.
This equal division of costs is a standard practice in franchise mediation, as it ensures that neither party is unduly burdened by the expense of the process. It also encourages both parties to approach the mediation with a serious intent to find a resolution, as they both have a financial stake in the outcome.
Prospective Bhc franchisees should be aware of this provision, as it means they will be responsible for half of the mediator's fees and related costs if a dispute goes to mediation. This should be factored into their financial planning and risk assessment when considering a Bhc franchise. While mediation aims to be a more cost-effective alternative to litigation or arbitration, these costs can still be significant and should not be overlooked.