What are the potential costs associated with arbitration for Bonchon under the Stripe Services Agreement?

According to Bonchon's 2025 Franchise Disclosure Document, disputes with Stripe are subject to arbitration. The costs associated with arbitration under the Stripe Services Agreement can include fees for the arbitrator, the arbitration reporter's attendance at hearings, and the arbitration facility itself. These costs can vary depending on the complexity and length of the arbitration process.

For claims not exceeding $75,000, the Expedited Procedures of the American Arbitration Association's Commercial Arbitration Rules will apply. Furthermore, for claims not exceeding $25,000, Section E-6 of these Expedited Procedures may apply, potentially offering a more streamlined and cost-effective process. However, it's important to note that these monetary thresholds exclude interest, attorneys' fees, and arbitration fees and costs, meaning the actual costs could be higher if these are factored in.

Bonchon franchisees should be aware that the prevailing party in the arbitration may be awarded costs and attorneys' fees reasonably incurred, providing a potential avenue to recover expenses. However, this also means that a franchisee could be responsible for Stripe's legal costs if they do not prevail. The agreement also emphasizes confidentiality, which could limit the franchisee's ability to discuss the arbitration publicly.