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

According to the 2024 Gokhale Method Franchise Disclosure Document, in the event of a dispute requiring mediation, each party is responsible for covering their own costs. However, the fees for the mediator are to be divided equally between the parties involved. This arrangement is designed to ensure that both Gokhale Method and the franchisee share the expense of the mediator, while each party remains responsible for their own legal and administrative costs associated with the mediation process.

This cost-sharing arrangement is a fairly standard practice in franchise agreements, as it encourages both parties to engage in mediation in good faith. By requiring each side to pay their own costs, it discourages frivolous claims and encourages a focus on resolving the dispute efficiently. Sharing the mediator's fees ensures neutrality and shared investment in the mediation process.

It's important to note that this mediation requirement does not apply to certain types of disputes, such as those involving payment obligations more than 45 days past due, misuse of confidential information, or disputes over intellectual property. In these specific cases, Gokhale Method or the franchisee may proceed directly to arbitration or court without first engaging in mediation. This exception is designed to protect Gokhale Method's critical business interests and ensure swift resolution of urgent matters.