Who pays for attorney fees and costs during arbitration for a Carbones Pizzeria dispute?

According to the 2025 Carbones Pizzeria Franchise Disclosure Document, in the event that mediation does not resolve a dispute and the matter proceeds to arbitration, each party is responsible for covering their own attorney fees and costs. Additionally, the costs of the arbitration itself will be split equally between the parties involved. This means a franchisee would need to budget for these potential legal expenses should a dispute arise that goes to arbitration.

The arbitration will take place in Hennepin County, Minnesota, following the rules established by the American Arbitration Association. A panel of three arbitrators will preside over the arbitration, with each party selecting one member and the remaining member being chosen by the two arbitrators already selected. It is specified that none of the arbitrators can be the previous mediator.

The selected arbitrators must possess a minimum of ten years of experience in franchise matters. They have the authority to enforce specific performance of the agreement. However, the arbitrator is required to adhere to the substantive law, requirements, waivers, and limitations outlined in the agreement, and cannot alter the terms of the agreement. The arbitrator is also prohibited from determining whether class, mass, collective, or consolidated relief is permitted or from awarding such relief. The arbitrator's findings are limited to the specific dispute presented in the written demand for arbitration.