How are the fees and expenses of the mediator shared between the parties during mediation with Buona?

According to Buona's 2025 Franchise Disclosure Document, if a dispute arises that requires mediation, the fees and expenses of the mediator are shared equally between Buona and the franchisee. Each party is responsible for covering their own additional costs associated with the mediation process. 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.

This equal sharing of mediator fees encourages both Buona and the franchisee to approach mediation in good faith and to actively seek a resolution. It prevents either party from being financially burdened by the mediation process, which could discourage them from participating fully. The stipulation that each party bears its own additional costs, such as attorney fees or travel expenses, further incentivizes efficient preparation and presentation during mediation.

It's important to note that this mediation clause applies before initiating any litigation. The FDD specifies that no litigation can commence until at least 30 days after the selection of a mediator, unless both parties agree that mediation is unsuccessful or if one party fails to respond to the mediation request within 30 days. This mandatory mediation provision aims to resolve disputes amicably and avoid costly and time-consuming legal battles, which can be beneficial for both Buona and its franchisees.