Who shares the cost of the arbitrator in Cool Binz arbitration?

According to Cool Binz's 2025 Franchise Disclosure Document, the costs of the arbitrator are shared equally between the franchisee and Cool Binz. Each party, however, bears its own additional arbitration costs.

This means that if a dispute arises that leads to arbitration, a Cool Binz franchisee will be responsible for half of the arbitrator's fees, in addition to their own legal and administrative costs associated with presenting their case. This arrangement is a fairly standard practice in franchising, as it ensures that both parties have a vested interest in controlling costs during the arbitration process.

It is important to note that Cool Binz has the option to pursue claims in court instead of arbitration under certain circumstances. These circumstances include allegations of violations of intellectual property rights, warranty issues, restrictive covenants, fraud, misrepresentation, insolvency, or claims where the alleged damages are less than $50,000. This could mean that a franchisee might incur higher litigation costs if Cool Binz chooses to litigate in court.