Who pays for their own counsel, experts, witnesses, and preparation during a Creative World School arbitration?

According to the 2025 Creative World School Franchise Disclosure Document, each party involved in an arbitration bears their own expenses related to legal representation, expert witnesses, and the preparation and presentation of their case. This means that a franchisee would be responsible for covering the costs of their own attorney, any expert witnesses they choose to call, and all the expenses associated with preparing and presenting their evidence. However, the arbitrator has the discretion to award costs and attorneys' fees to the prevailing party at the conclusion of the proceeding.

This arrangement is fairly standard in franchise agreements, as it ensures that each party is responsible for managing their own legal costs. However, the provision that allows the arbitrator to award costs and attorneys' fees to the prevailing party introduces an element of risk and potential reward. If a franchisee is confident in their case and believes they have a strong chance of winning, this provision could incentivize them to pursue arbitration, knowing that they could potentially recover their legal expenses.

Conversely, if a franchisee is unsure about the strength of their case, they may be more hesitant to pursue arbitration, as they would be responsible for their own legal costs regardless of the outcome, and they could potentially be ordered to pay the franchisor's legal fees as well. It is important for prospective franchisees to carefully consider the potential costs and benefits of arbitration before entering into a dispute with Creative World School.

Franchisees should consult with an experienced franchise attorney to assess the merits of their case and understand the potential financial implications of pursuing arbitration. Understanding these financial responsibilities is crucial for any potential Creative World School franchisee.