Who bears the costs of mediation in a Bumper Man dispute?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Franchisee will each bear their own costs of mediation, and each will bear one-half the cost of the mediator or mediation service.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, in the event of a dispute requiring non-binding mediation, both the franchisor and franchisee share the costs. Each party is responsible for covering their own individual costs associated with the mediation process. In addition to their own costs, the franchisor and franchisee will each bear one-half of the expenses for the mediator or mediation service itself.
This arrangement means that franchisees need to budget for potential mediation expenses. These expenses could include attorney fees, preparation costs, and travel. By splitting the cost of the mediator, Bumper Man aims to ensure a fair process where neither party is unduly burdened by the expense of the mediation itself. This encourages both parties to participate in the mediation process in good faith.
It is important to note that this cost-sharing arrangement applies specifically to non-binding mediation. The FDD outlines other dispute resolution methods, such as arbitration, which may have different cost allocation rules. Franchisees should carefully review the entire dispute resolution section of the Franchise Agreement to understand their financial responsibilities under various scenarios.