Who bears their own expenses during mediation of a Crave Cookies dispute?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Crave Cookies Franchising will split the costs, and each will bear their own expenses of any mediation.
The mediation will be conducted exclusively in the city and state of Crave Cookies Franchising's then-current headquarters.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, in the event of a dispute requiring mediation, both the franchisee and Crave Cookies Franchising will share the costs of the mediation itself. However, each party is responsible for covering their own individual expenses associated with the mediation process. This means that while the cost of the mediator will be split, expenses like attorney fees, travel costs, and any other personal costs incurred during mediation are the sole responsibility of the party incurring them.
This arrangement is fairly standard in franchising, as it ensures that neither party is unduly burdened by the costs of attempting to resolve a dispute through mediation. It also encourages both parties to participate in the mediation process in good faith, as they both have a financial stake in reaching a resolution. The FDD also specifies that the mediation will occur at Crave Cookies Franchising's headquarters.
For a prospective Crave Cookies franchisee, this means that while mediation offers a potentially less expensive alternative to litigation, it's important to factor in the potential for these individual expenses. Depending on the nature and complexity of the dispute, these expenses could become significant. Franchisees should also be aware that the mediation will take place at Crave Cookies Franchising's headquarters, which may require travel and accommodation expenses.