Who is responsible for the fees and expenses of the mediator in a dispute with Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
24.1 Mediation. Except as otherwise specifically provided herein, prior to the initiation of litigation by either party pursuant to this Agreement, the parties must make a good faith effort to resolve any controversies between them by non-binding mediation either through a mutually acceptable mediator or through an established mediation service selected by Franchisor (in either case, "Mediator"). Mediation shall take place in the Cook County, Illinois. Prior to mediation, each party involved in mediation shall sign the standard confidentiality agreement reasonably required by Mediator or a confidentiality agreement reasonably required by Franchisor if the Mediator does not have a standard confidentiality agreement. No litigation proceeding may be commenced until the earlier of thirty (30) days from the selection of the Mediator, or the mutual agreement by both parties that mediation has been unsuccessful, or if the notified party fails to respond to the requesting party within thirty (30) days of the delivery of notice requesting mediation. The parties will share equally all fees and expenses of the mediator, and each part shall bear its own costs otherwise. Each party hereby agrees that all statements made in the course of mediation shall be strictly confidential and shall not be disclosed to or shared with any third parties, other than the mediator. Each party also agrees that any documents or data specifically prepared for use in good faith negotiations and/or mediation shall not be disclosed to or shared with any third party except those parties whose presence is necessary to facilitate the mediation process. The parties agree not to make copies of any such documents, and to return them to the other party upon the conclusion of the mediation. Each party agrees and acknowledges that no statements made in, or evidence specifically prepared for mediation shall be admissible for any purpose in any subsequent proceedings.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, in the event of a dispute requiring mediation, the fees and expenses of the mediator will be shared equally between Buona and the franchisee. Each party will bear its own additional costs associated with the mediation process.
This arrangement is fairly standard in franchising, as it encourages both parties to approach mediation with a willingness to find a resolution. By splitting the mediator's fees, neither party is unduly burdened financially during the dispute resolution process. This can help prevent one party from being at a disadvantage due to cost considerations.
It is important to note that all statements made during mediation are to be kept strictly confidential and cannot be disclosed to third parties. Documents prepared specifically for mediation are also subject to confidentiality and must be returned to the other party upon conclusion of the mediation. This confidentiality provision aims to foster open and honest communication during the mediation process, without fear of later repercussions based on statements made or evidence presented during mediation.