In Cinch I.T. mediation, who bears their own costs and fees?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.2 If the dispute is not resolved pursuant to Section 21.1 above, the Parties shall submit the dispute to mediation in accordance with the Commercial Arbitration Rules and Mediation Procedures (Including Procedures for Large, Complex Commercial Disputes) of the American Arbitration Association unless both Parties agree to waive mediation and proceed directly to arbitration as set forth in Section 21.3.
Each party will bear their own costs and fees of the mediation, however, the mediator's fee will be split equally between the Parties.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, in the event that a dispute is submitted to mediation, each party involved will bear their own costs and fees. However, the fee for the mediator will be split equally between the parties involved.
This means that a Cinch I.T. franchisee will be responsible for covering their own legal fees, travel expenses, and any other costs they incur during the mediation process. This is a fairly standard arrangement in franchise mediation, as it ensures that each party has a vested interest in controlling their own expenses.
It is important for prospective Cinch I.T. franchisees to understand this provision, as mediation can be a costly process. Franchisees should factor in these potential costs when evaluating the financial feasibility of the franchise. While mediation can be a valuable tool for resolving disputes, it is not without its expenses, and franchisees should be prepared to cover their share.