How is the cost of the mediator shared between Face Foundrie and the franchisee?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Franchisee will equally share the cost of the mediator.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if mediation is required to resolve disputes, the cost of the mediator is equally shared between Face Foundrie and the franchisee. This applies to all disputes involving the Franchise Agreement or any aspect of the relationship between Face Foundrie and the franchisee.
This arrangement means that a franchisee will be responsible for 50% of the mediator's fees, which can include hourly rates, administrative costs, and any other expenses charged by the mediator. This cost-sharing arrangement is a fairly standard practice in franchising, as it ensures that both parties have a vested interest in resolving the dispute efficiently and cost-effectively.
However, it's important to note that this cost-sharing only applies to the mediator's fees. Other expenses, such as legal counsel, travel, and preparation costs, would likely be the responsibility of each individual party. Franchisees should factor in the potential for these mediation costs when assessing the overall financial implications of entering into a Face Foundrie franchise agreement.