Who bears the attorneys' fees and other costs incurred in connection with the Jersey Mikes mediation?

According to Jersey Mikes's 2025 Franchise Disclosure Document, in the event of a mediation, each party is responsible for their own attorneys' fees and other associated costs, regardless of the mediation's outcome or the mediator's assessment of each party's case. This means that whether the mediation is successful or not, a franchisee will have to cover their own legal expenses.

Additionally, the fees and expenses of the American Arbitration Association (AAA), or any other administrator, and the mediator's fee, will be shared equally between the parties involved. This division of costs applies specifically to the administrative and mediator fees, separate from the individual legal costs each party must bear.

This arrangement is fairly standard in franchising, as it ensures that neither party is financially penalized for engaging in mediation, and it encourages both parties to approach the process in good faith. However, franchisees should be aware of these potential costs and factor them into their financial planning.