Who bears the cost of arbitration for Cool Binz disputes?

According to Cool Binz's 2025 Franchise Disclosure Document, in the event of arbitration, each party is responsible for covering their own arbitration costs. However, the costs associated with the arbitrator are to be shared equally between Cool Binz and the franchisee.

This arrangement means that a franchisee entering into a dispute with Cool Binz will need to budget for their own legal representation and any associated costs of preparing and presenting their case during arbitration. They will also need to be prepared to pay for half of the arbitrator's fees, which can potentially be a significant expense depending on the complexity and length of the arbitration process.

It is important to note that Cool Binz retains the option to pursue litigation in court under certain circumstances, such as disputes involving intellectual property rights, warranty issues, restrictive covenants, fraud, misrepresentation, insolvency, or claims where the alleged damages are less than $50,000. This could shift the cost allocation depending on the venue and nature of the dispute. Franchisees should carefully consider these factors and seek legal counsel to understand the potential financial implications of dispute resolution.