What costs are the parties responsible for in Crepe De Licious mediation?

Based on the 2025 Crepe De Licious Franchise Disclosure Document, the document does not specify which party is responsible for costs incurred during mediation. However, the franchise agreement does state that if Crepe De Licious pursues legal remedies against a franchisee for breach of contract and prevails, the franchisee agrees to pay Crepe De Licious's reasonable attorneys' fees and costs. This clause highlights the importance of adhering to the franchise agreement to avoid potential legal expenses.

In franchise agreements, mediation is a common method for resolving disputes outside of court. Without specific details in the FDD, it is important for prospective franchisees to understand the potential financial responsibilities associated with mediation or litigation. The FDD does outline the franchisee's responsibility for Crepe De Licious's legal costs if the franchisee breaches the agreement and Crepe De Licious wins the legal action.

Therefore, a prospective Crepe De Licious franchisee should seek clarification from the franchisor regarding the allocation of mediation costs. Understanding these potential costs is crucial for making an informed investment decision and planning for possible future disputes. Franchisees should also consult with a legal professional to fully understand their rights and obligations under the franchise agreement.