How are the costs of the mediator shared between Face Foundrie and the franchisee during mediation?

According to Face Foundrie's 2025 Franchise Disclosure Document, both Face Foundrie and the franchisee will equally share the cost of the mediator during mediation. The mediator will determine the location for the mediation, but unless both parties agree otherwise, the mediation will be held in a metropolitan area within 20 miles of Face Foundrie's principal office.

This arrangement ensures that neither party bears the full financial burden of the mediation process, promoting a more equitable approach to dispute resolution. By equally sharing the mediator's costs, Face Foundrie and the franchisee have a mutual incentive to engage in mediation in good faith and seek a resolution efficiently.

The FDD specifies that the mediator must have at least ten years of experience as either a franchisee or franchisor (or as an officer of such an entity) or in franchise law. This requirement ensures that the mediator has relevant industry knowledge and experience to facilitate a fair and informed mediation process. The location of the mediation, generally near Face Foundrie's principal office, may present a logistical consideration for franchisees located further away, potentially increasing their travel costs unless an alternative location is agreed upon.

Mediation is required for a minimum of four hours before either party can initiate legal action or arbitration, except when seeking equitable relief to protect business goodwill, such as enforcing termination obligations or non-compete agreements. This encourages both parties to attempt to resolve disputes through mediation before resorting to more costly and time-consuming legal proceedings.