Who is responsible for the fees and expenses of the mediator in a dispute with Hck Hot Chicken?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The fees and expenses of the mediator shall be shared equally by the parties.
Source: Item 23 — RECEIPTS (FDD pages 55–245)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, in the event of a dispute requiring mediation, the fees and expenses of the mediator are to be shared equally between the parties involved. This means that both Hck Hot Chicken and the franchisee will each bear 50% of the mediator's costs.
This arrangement is fairly standard in franchise agreements, as it ensures that neither party is unduly burdened by the costs of mediation, encouraging a more balanced approach to dispute resolution. By splitting the costs, both parties have a vested interest in keeping the mediation process efficient and focused on reaching a resolution.
Prospective franchisees should consider this when evaluating the potential costs associated with resolving disputes with Hck Hot Chicken. While mediation is generally less expensive than litigation or arbitration, the mediator's fees can still be a significant expense, and franchisees should be prepared to cover their portion.