Who bears the costs associated with attending mediation for a Card My Yard franchise dispute?

According to Card My Yard's 2025 Franchise Disclosure Document, in the event of a disagreement that proceeds to nonbinding mediation, each party is responsible for their own costs associated with attending the mediation. This means that the franchisee will need to cover expenses like travel, accommodation, and attorney fees for their representatives. However, the cost of the mediator itself will be equally split between the franchisee and Card My Yard.

This arrangement is fairly standard in franchising, where both parties typically bear their own expenses for dispute resolution processes like mediation. Sharing the cost of the mediator is also a common practice, as it ensures neutrality and encourages both sides to participate in good faith.

For a prospective Card My Yard franchisee, this means that while they won't be solely responsible for the entire cost of mediation, they should still budget for their own expenses related to attending and participating in the process. It's important to factor in potential legal fees and other costs when evaluating the overall financial implications of investing in a Card My Yard franchise. Understanding these cost-sharing arrangements can help franchisees better prepare for potential disputes and manage their financial risks.

It is important to note that this cost allocation applies specifically to mediation. If the dispute proceeds to arbitration, different cost rules may apply, which the FDD excerpt does not detail.