How are the fees and expenses of the mediator shared between Black Bear Diner and the franchisee?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Mediation. If the dispute remains unresolved after the face-to-face meeting, the parties agree to submit the dispute to non-binding mediation conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association ("AAA"), unless the parties agree on alternative rules. The mediator must be a neutral person agreed upon by the parties and experienced in franchising. Any party may be represented by counsel and persons authorized to settle the dispute must attend any mediation session. The fees and expenses of the mediator shall be shared equally by the parties. The entire mediation process shall be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and the parties shall not be discoverable or admissible in any legal proceeding for any purpose; provided, however, that evidence which is otherwise discoverable or admissible shall not be excluded from discovery or admission as a result of its use in the mediation. The parties agree to participate in the mediation proceedings in good faith with the intention of resolving the dispute if at all possible within 30 days of the notice from the party seeking to initiate the mediation procedures.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, if a dispute between Black Bear Diner and a franchisee cannot be resolved through a face-to-face meeting, the parties agree to submit to non-binding mediation. This mediation will be conducted following the Commercial Mediation Rules of the American Arbitration Association (AAA), unless both parties agree to use alternative rules.
The mediator must be a neutral person agreed upon by both Black Bear Diner and the franchisee, and they should have experience in franchising. Both parties have the right to be represented by counsel, and individuals authorized to settle the dispute must be present at any mediation session.
The critical point for a prospective franchisee is that the fees and expenses of the mediator are to be shared equally between Black Bear Diner and the franchisee. The entire mediation process is to be kept confidential, and any conduct, statements, promises, offers, views, and opinions expressed during mediation are not admissible in any legal proceeding. However, any evidence that is otherwise discoverable remains admissible, even if it was used during the mediation. Both parties are expected to participate in the mediation proceedings in good faith, with the goal of resolving the dispute within 30 days of initiating the mediation procedures.