How are the costs of the Mediator shared between the parties in a City Publications mediation?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Any controversy or claim, other than those arising from falsification of reports, abandonment, those regarding trademark infringement, and non-compete provisions, arising out of or relating to this contract, or the breach thereof, shall be subject to non-binding mediation. The Mediator will be appointed in accordance with the Rules and Regulations of the American Arbitration Association unless the parties agree on a Mediator in writing within ten (10) days after either party gives written notice of Mediation. If either party alleges a dispute or controversy against the other party for any reason, except for those specified above, then that party will have the right to demand non-binding Mediation within the (10) days after the complaining party provides the other party with written notice describing the dispute or controversy. All Mediation hearings will take place exclusively in Cobb County Georgia, and will be held within twenty (20) days after the Mediator has been appointed. The cost of the Mediator will be shared equally by the parties. The parties agree that they will act in good faith to settle any dispute or controversy between them either prior to or during Mediation. All matters, testimony, arguments, evidence, allegations, documents and memorandums will be confidential in all respects and will not be disclosed to any other person or entity by either party.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, if a controversy or claim arises that requires non-binding mediation, the cost of the Mediator will be shared equally by City Publications and the franchisee. This applies to disputes arising out of or relating to the franchise contract or its breach, excluding issues like falsification of reports, abandonment, trademark infringement, and non-compete provisions.
This means that a prospective City Publications franchisee should budget for potential mediation costs, understanding they will be responsible for half of the Mediator's fees. The mediation hearings will take place in Cobb County, Georgia, within twenty days after the Mediator is appointed.
It is important to note that this cost-sharing arrangement is specifically for the Mediator's fees. Any additional expenses, such as attorney fees or travel costs, are not explicitly addressed in this section and would likely be the responsibility of the individual party incurring them. Franchisees should also be aware that the agreement emphasizes acting in good faith to settle disputes before or during mediation, suggesting an expectation of cooperation and reasonable conduct throughout the process.