Who bears the costs of mediation for Crepe De Licious disputes?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the costs of mediation are divided between the franchisor and the franchisee. Specifically, each party is responsible for covering their own costs associated with the mediation process. In addition to these individual costs, the expense of the mediator or mediation service itself is split equally, with each party bearing one-half of the total cost. This arrangement applies to disputes between Crepe De Licious and its Area Developers.

For a prospective Crepe De Licious franchisee, this means that in the event of a dispute requiring mediation, they will need to budget for their own legal and administrative costs, as well as half of the mediator's fees. This cost-sharing approach is a fairly standard practice in franchising, as it ensures that both parties have a vested interest in resolving the dispute efficiently and amicably. It also prevents one party from being financially burdened by the entire mediation process, which could discourage them from pursuing a resolution.

It's important to note that this cost-sharing arrangement may not apply to all types of disputes. The FDD states that this applies to disputes between the Franchisor and Area Developer. Franchisees should carefully review the dispute resolution section of the Franchise Agreement to understand the specific circumstances under which this cost-sharing arrangement applies. Franchisees should also clarify with Crepe De Licious what dispute resolution procedures and cost allocations are applicable to standard franchisees, as opposed to Area Developers.