Who bears the costs and expenses of arbitration in a Dryject franchise dispute?

According to the 2025 Dryject Franchise Disclosure Document, the costs and expenses of arbitration, including the arbitrator's compensation and expenses, are borne by the non-prevailing party. This means that if a Dryject franchisee loses the arbitration case, they will be responsible for covering these costs. Conversely, if Dryject loses, the company will be responsible for these expenses.

This arrangement can have significant financial implications for a prospective Dryject franchisee. Arbitration costs can be substantial, potentially including arbitrator fees, administrative fees, and other associated expenses. The financial risk is particularly relevant because the arbitration is conducted in accordance with the American Arbitration Association (AAA) rules, and the arbitrator must have at least ten years of experience in law and franchise law.

It is important for a potential Dryject franchisee to carefully consider the implications of this clause. They should assess their risk tolerance and financial capacity to handle potential arbitration costs. Understanding the factors that could lead to a dispute and the likelihood of prevailing in arbitration are also crucial. Seeking legal counsel to review the franchise agreement and understand the arbitration process is advisable.