How are the costs of mediation shared between Craters & Freighters and the franchisee?

According to the 2025 Craters & Freighters Franchise Disclosure Document, the costs of mediation are divided between the franchisor and franchisee. Each party is responsible for covering their own individual costs associated with the mediation process. However, the fees charged by the mediator itself are to be shared equally between Craters & Freighters and the franchisee.

This arrangement means that a franchisee will need to budget for their own legal and consulting fees, travel, and any other expenses they incur while preparing for and participating in mediation. They will also be responsible for half of the mediator's fees. This division of costs is a fairly standard practice in franchise agreements, as it ensures that both parties have a financial stake in reaching a resolution through mediation.

It's important to note that certain types of disputes are excluded from mandatory mediation, including those involving Craters & Freighters's intellectual property rights, restrictive covenants within the agreement, and the franchisee's payment obligations. In these cases, the parties may proceed directly to arbitration or litigation without first attempting mediation. Franchisees should carefully consider these provisions and understand the potential costs associated with dispute resolution when evaluating the Craters & Freighters franchise opportunity.