If mediation is used to resolve a dispute with Crave Cookies, who pays the costs of the mediation?
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's 2025 Franchise Disclosure Document, if a dispute arises and mediation is pursued, the costs are divided between the franchisee and Crave Cookies Franchising. Specifically, both parties will equally split the costs associated with the mediation process. Each party is also responsible for covering their own additional expenses incurred during mediation.
This arrangement means that a franchisee will not be solely responsible for all mediation costs, which can be a significant financial benefit. However, franchisees should still be prepared to pay for half of the mediation costs, as well as their own legal or consulting fees. The mediation will be held at Crave Cookies Franchising's headquarters.
It is important to note that this cost-sharing arrangement applies specifically to mediation. If the dispute escalates to a legal proceeding, the terms for covering legal costs shift, potentially placing the burden on the non-prevailing party to cover the prevailing party's legal fees and expenses.