Who pays for the costs of mediation in a Crave Cookies dispute?

According to Crave Cookies' 2025 Franchise Disclosure Document, both the franchisee and Crave Cookies Franchising will share the costs associated with mediation. Each party is responsible for covering their own individual expenses incurred during the mediation process. This arrangement is designed to encourage both parties to engage in mediation in good faith, as each bears a portion of the financial burden.

This cost-sharing arrangement is a fairly standard practice in franchising, as it promotes a balanced approach to dispute resolution. By splitting the costs, neither party is unduly burdened, and both have an incentive to find a mutually agreeable solution through mediation. This can be a more cost-effective and less time-consuming alternative to litigation.

The FDD specifies that the mediation will be conducted in the city and state of Crave Cookies Franchising's headquarters. If mediation is unsuccessful, either party may initiate a legal suit. However, if a legal proceeding occurs, the prevailing party is entitled to receive payment for costs and expenses from the non-prevailing party, including attorney's fees and court costs. This provision does not apply to mediation costs, which are split regardless of the outcome.