How are the costs of mediation allocated between the parties in a Carbones Pizzeria franchise dispute?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if a dispute arises and is submitted to mediation, each party is responsible for covering their own attorney fees and costs. In addition to this, the costs of the mediation itself will be split equally, with each party paying one-half of the total mediation expenses. This mediation will take place in Hennepin County, Minnesota, and will involve a mediator that is agreed upon by both parties.

This arrangement means that a Carbones Pizzeria franchisee will need to budget for both their legal representation and half of the mediator's fees should a dispute arise that requires mediation. This is a fairly standard arrangement in franchise agreements, as it ensures both parties have a financial stake in resolving the dispute efficiently and amicably. It also encourages parties to take the mediation process seriously, as they will directly bear a portion of the costs.

It's important to note that this cost-sharing arrangement applies specifically to mediation. If the mediation is unsuccessful and the dispute proceeds to arbitration, a similar cost-sharing arrangement applies, where each party pays one-half of the arbitration costs and their own legal fees. Understanding these potential costs is crucial for any prospective Carbones Pizzeria franchisee when evaluating the overall financial implications of the franchise agreement.