How are the arbitrator's fees divided between the parties in a Gokhale Method arbitration?

According to the 2024 Gokhale Method Franchise Disclosure Document, in the event of arbitration, the fees of the arbitrator are divided equally between Gokhale Method and the franchisee. Each party is responsible for covering their own additional costs associated with the arbitration process.

This arrangement means that a franchisee entering arbitration with Gokhale Method will need to budget for half of the arbitrator's fees, in addition to their own legal and administrative costs. This is a fairly standard arrangement in franchise agreements, as it ensures that neither party is unduly burdened by the cost of resolving disputes through arbitration.

It's important to note that the arbitration will take place before a sole arbitrator in Palo Alto, California. There are also certain claims or disputes that do not require arbitration, allowing either party to proceed directly in court. These exceptions include issues regarding payment obligations that are significantly overdue, concerns about the disclosure or misuse of confidential information, disputes over the ownership or use of trademarks, and the enforcement of specific covenants within the franchise agreement.