How are the costs of arbitration shared between the parties in a Carbones Pizzeria dispute?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, in the event that mediation does not resolve a dispute, the matter will proceed to arbitration in Hennepin County, Minnesota, following the rules established by the American Arbitration Association. A panel of three arbitrators will be established, with each party selecting one member, and the two chosen arbitrators then selecting the third.

Regarding the costs associated with arbitration, each party is responsible for paying one-half of the arbitration costs. Additionally, each party will cover their own attorney fees and costs, if any are incurred. This arrangement means that a franchisee entering into arbitration with Carbones Pizzeria will need to budget for these expenses.

This cost-sharing arrangement is fairly typical in franchise agreements. It ensures that neither party is unduly burdened by the costs of resolving disputes, encouraging a more equitable approach to conflict resolution. However, franchisees should be aware of these potential costs and factor them into their financial planning.