According to the Craters & Freighters agreement, who bears the cost of mediation?

According to the 2025 Craters & Freighters Franchise Disclosure Document, the cost of mediation is divided between the franchisor and franchisee. Each party is responsible for covering their own costs associated with the mediation process. However, the fees charged by the mediator are to be shared equally between Craters & Freighters and the franchisee. This arrangement ensures that both parties have a financial stake in the mediation process, encouraging them to actively participate and seek a resolution.

This cost-sharing arrangement is a fairly standard practice in franchise agreements, as it promotes fairness and encourages both parties to engage in mediation seriously. By requiring each party to bear their own costs, it prevents one party from being financially burdened by the process. Sharing the mediator's fees equally further incentivizes both Craters & Freighters and the franchisee to work towards a mutually agreeable solution.

It's important for prospective Craters & Freighters franchisees to understand this cost-sharing arrangement, as mediation can be a crucial step in resolving disputes before they escalate to more costly and time-consuming litigation or arbitration. Franchisees should factor in potential mediation costs when assessing the overall financial implications of entering into a franchise agreement with Craters & Freighters. Understanding these financial responsibilities upfront can help franchisees better prepare for potential disputes and manage their business finances effectively.