Who bears the costs of arbitration in a Gokhale Method dispute?

According to the 2024 Gokhale Method Franchise Disclosure Document, in the event of arbitration, each party is responsible for covering their own costs. However, the fees for the arbitrator are to be divided equally between the parties involved in the dispute. This arrangement means that franchisees will need to budget for their legal representation and other related expenses, as well as a portion of the arbitrator's fees, should a dispute arise that requires arbitration.

This cost-sharing arrangement is a fairly common practice in franchising. It ensures that neither party is unduly burdened by the costs of resolving disputes through arbitration. By splitting the arbitrator's fees, Gokhale Method aims to create a more equitable process.

It is important to note that this cost allocation applies specifically to arbitration. The FDD outlines certain exceptions where arbitration is not required, such as disputes involving payment obligations, misuse of confidential information, or intellectual property rights. In these cases, legal actions may proceed in court, and the costs associated with litigation would be determined by the court.