What costs and expenses can the substantially prevailing party in a Crepe De Licious arbitration recover?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The fees of, and authorized costs incurred by, the arbitrator will be shared equally by the parties, and each party will bear all of its own costs of arbitration; provided, however, that the arbitration decision will provide that the substantially prevailing party will recover from the other party its actual costs and expenses (including arbitrator's fees and expenses, and attorney fees and expenses) incurred in connection with the dispute.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, in the event of arbitration, the fees and authorized costs incurred by the arbitrator will be equally shared between the parties involved. However, the substantially prevailing party in the arbitration has the right to recover their actual costs and expenses from the other party.
These recoverable costs and expenses specifically include the arbitrator's fees and expenses, as well as attorney fees and expenses, that were incurred in connection with the dispute. This means that if a Crepe De Licious franchisee wins the arbitration case, they can recoup the money spent on the arbitrator and their legal representation.
This arrangement could significantly reduce the financial burden on the winning party, as arbitration and legal fees can be substantial. However, it's important to note that this recovery is contingent upon being deemed the "substantially prevailing party" by the arbitrator, which introduces an element of uncertainty. Franchisees should carefully consider these potential costs and benefits when evaluating the arbitration process.