In Caring Transitions arbitration, who bears the costs and expenses, such as attorney fees?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
isee upon the confirmation of the award by a court of competent jurisdiction. Each party shall bear its own costs and expenses in connection with the arbitration, including travel expenses, out-of-pocket expenses such as copying and telephone charges, court costs, witness fees, and attorney and accounting fees. The administrative fees and arbitrators' fees shall be allocated equally between the parties. The arbitration proceedings shall take place in Hamilton County, Ohio. Any demand for arbitration must be made before the statute of limitations applicable to such a claim has run. Any dispute arising out of or in connection with this arbitration provision, including any question regarding its existence, validity, scope, or termination, shall be decided by arbitration.
- (b) A party shall not have the right to appeal an award under subparagraph (a) of this Section unless the party: (i) fully cooperated in the exchange of information and discovery as ordered by the arbitration panel in the initial arbitration;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, in the event of arbitration, each party is responsible for covering their own costs and expenses. This includes expenses like travel, out-of-pocket costs such as copying and telephone charges, court costs, witness fees, and attorney and accounting fees. The administrative fees and arbitrators' fees, however, are allocated equally between the parties. This means that a franchisee entering into arbitration with Caring Transitions will need to budget for all of their legal representation, travel, and other related costs, in addition to their half of the administrative and arbitrator fees.
This arrangement could potentially create a financial disadvantage for the franchisee, especially if Caring Transitions has greater resources. Franchisees should consider this potential cost when evaluating the franchise opportunity and factor it into their financial planning. Understanding this allocation of costs is crucial for franchisees to make informed decisions about dispute resolution and to prepare for potential financial burdens associated with arbitration.
The arbitration proceedings will take place in Hamilton County, Ohio, regardless of where the franchisee's business is located. Any demand for arbitration must be made before the statute of limitations applicable to such a claim has run. The arbitrators do not have the power to award special, indirect, consequential, or punitive damages. The award shall be in writing and shall be accompanied by a reasoned opinion.