Who pays the fees and expenses of the Chatime arbitration proceeding if not awarded to the prevailing party?

According to Chatime's 2025 Franchise Disclosure Document, if the arbitrator does not award the fees and expenses of the arbitration proceeding to the prevailing party, then each party involved will bear their own fees, costs, and expenses. In addition, the charges for the arbitration service and the arbitrator will be split between the parties.

This means that as a prospective Chatime franchisee, you should be aware that even if you have a legitimate dispute that goes to arbitration, you may still be responsible for your own legal costs and a portion of the arbitration expenses if you do not win the case outright. This is a standard clause in many franchise agreements, as it ensures that both parties have a vested interest in resolving disputes efficiently and fairly.

It is important to consider the potential costs of arbitration when evaluating the Chatime franchise opportunity. Before entering into a franchise agreement, you should consult with an attorney to fully understand the implications of the arbitration clause and to assess your potential financial exposure in the event of a dispute.