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

According to Carbones Pizzeria's 2025 Franchise Disclosure Document, if a dispute arises that requires mediation, the costs are divided equally between the parties involved. Specifically, each party is responsible for paying one-half of the mediation costs. In addition to these mediation costs, each party is also responsible for covering their own attorney fees and any other associated costs. The mediation will take place in Hennepin County, Minnesota, with a mutually agreed-upon mediator.

This arrangement is fairly standard in franchise agreements, as it ensures that both Carbones Pizzeria and the franchisee have a vested interest in resolving the dispute efficiently and cost-effectively. By sharing the costs, neither party is unduly burdened financially during the mediation process. This encourages a collaborative approach to finding a resolution, as both parties are incentivized to minimize expenses.

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. Franchisees should consider these potential costs when evaluating the overall financial implications of entering into a franchise agreement with Carbones Pizzeria.