How are the costs and fees of mediation allocated between the parties in a Dryject franchise dispute?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Each party will bear their own costs and fees of the mediation, however, the mediator's fee will be split equally between the parties."
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, in the event of a dispute that proceeds to mediation, each party is responsible for covering their own costs and fees associated with the mediation process. However, the fee charged by the mediator will be split equally between Dryject and the franchisee. This arrangement is fairly standard in franchise agreements, as it ensures both parties share the cost of the neutral third party facilitating the mediation.
This cost-sharing structure encourages both Dryject and the franchisee to approach mediation with a serious intent to find a resolution. If one party had to bear the entire cost of the mediator, they might be less inclined to participate fully in the process. By splitting the mediator's fee, both parties have a financial incentive to engage constructively and efficiently.
It's important for prospective Dryject franchisees to understand this allocation of costs, as mediation can be an important step in resolving disputes before they escalate to more expensive and time-consuming arbitration or litigation. Knowing that they will be responsible for their own costs, as well as half of the mediator's fee, allows franchisees to budget accordingly and weigh the potential benefits of mediation against the expenses involved.