How are arbitration costs shared between Clear Pest Pros and the franchisee?

According to Clear Pest Pros' 2025 Franchise Disclosure Document, in the event of arbitration, each party is responsible for covering their own arbitration expenses. However, the costs imposed by the arbitrator will be equally split between Clear Pest Pros and the franchisee.

This means that a franchisee entering into a dispute with Clear Pest Pros will need to budget for their own legal representation and any associated costs. They will also need to be prepared to pay for half of the arbitrator's fees. These fees can vary depending on the complexity of the case and the arbitrator's rates.

This arrangement is fairly typical in franchising, as it ensures that both parties have a stake in controlling costs during the arbitration process. However, franchisees should be aware of the potential financial burden of arbitration and consider this when evaluating the franchise opportunity. It is advisable to consult with a legal professional to fully understand the implications of the arbitration clause in the franchise agreement.