Who is responsible for the fees and expenses of the mediator in a dispute involving Black Bear Diner?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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, in the event of a dispute requiring mediation, the fees and expenses of the mediator are to be shared equally between Black Bear Diner and the franchisee.
This means that if a franchisee has a dispute with Black Bear Diner that proceeds to mediation, the franchisee will be responsible for paying half of the mediator's fees and expenses. The other half will be covered by Black Bear Diner. This arrangement is fairly standard in franchising, as it ensures that both parties have a vested interest in resolving the dispute efficiently and cost-effectively.
It is important for prospective Black Bear Diner franchisees to understand this cost-sharing arrangement, as mediation can be an expensive process. Franchisees should factor in the potential cost of mediation when evaluating the overall financial risks and benefits of investing in a Black Bear Diner franchise. Furthermore, the FDD specifies that the mediation will be conducted following the Commercial Mediation Rules of the American Arbitration Association (AAA), unless both parties agree to use alternative rules.