How are the mediator's fees and expenses split between the parties during mediation with Black Bear Diner?
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 Black Bear Diner's 2025 Franchise Disclosure Document, if a dispute arises and cannot be resolved through a face-to-face meeting, both the franchisee and franchisor 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 selected must be neutral and experienced in franchising, with both parties having the option to be represented by counsel. Crucially, individuals authorized to settle the dispute must be present at any mediation session.
The financial responsibility for the mediation is explicitly defined: the fees and expenses of the mediator are to be shared equally between Black Bear Diner and the franchisee. Furthermore, the entire mediation process is to remain confidential, ensuring that conduct, statements, offers, and opinions are not admissible in any legal proceeding. Both parties are expected to participate in the mediation in good faith, aiming to resolve the dispute within 30 days of initiating the mediation procedures.