factual

How are mediator fees split between Craters & Freighters and the franchisee?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

Each party will bear its own cost of mediation and Franchisor and Franchisee will share mediator fees equally.

Source: Item 22 — CONTRACTS (FDD pages 49–50)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, in the event of a dispute requiring mediation, both Craters & Freighters and the franchisee are responsible for their own mediation costs. The fees charged by the mediator are to be shared equally between Craters & Freighters and the franchisee.

This arrangement means that a franchisee will not be solely responsible for all mediation expenses, which can be a significant cost. By splitting the mediator fees equally, Craters & Freighters shares the financial burden of the mediation process. This encourages a more collaborative approach to resolving disputes, as both parties have a vested interest in keeping mediation costs down.

However, it's important to note that this cost-sharing arrangement does not apply to all types of disputes. Specifically, controversies, disputes, or claims concerning federally protected intellectual property rights in the Marks, the System, or in any Trade Secrets, Confidential Information, or other confidential information; any of the restrictive covenants contained in this Agreement; and any of Franchisee's payment obligations under this Agreement are not required to be submitted to mediation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.