How are the fees and expenses of the mediator shared in Kitchen Solvers mediation?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
The fees and expenses of the mediator must be shared equally by the parties.
The mediator may not later serve as a witness, consultant, expert or counsel for any party with respect to the dispute or any related or similar matter in which either of the parties is involved.
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Confidentiality.
The mediation procedure is a compromise negotiation or settlement discussion for purposes of federal and state rules of evidence.
The parties agree that no stenographic, visual or audio record of the proceedings may be made.
Any conduct, statement, promise, offer, view or opinion, whether oral or written, made in the course of the mediation by the parties, their agents or employees, or the mediator is confidential and shall be treated as privileged.
No conduct, statement, promise, offer, view or opinion made
in the mediation procedure is discoverable or admissible in evidence for any purpose, not even impeachment, in any proceeding involving either of the parties. However, evidence that would otherwise be discoverable or admissible will not be excluded from discovery or made inadmissible simply because of its use in the mediation.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, in the event that mediation is required to resolve a dispute, the fees and expenses of the mediator are to be shared equally between Kitchen Solvers and the franchisee. This means that both parties will bear the financial responsibility for the mediator's services. This arrangement is fairly standard in franchise agreements, as it ensures that neither party is unduly burdened by the cost of mediation, encouraging participation and good-faith negotiation.
It is important to note that even if the mediation does not result in a resolution, both parties are still expected to refrain from terminating negotiations or initiating arbitration or legal action until at least five days after the mediation concludes. The only exception to this rule is if a party needs to begin arbitration to avoid a statute of limitations issue or to seek an injunction to prevent irreparable harm.
The FDD also specifies that the mediator is prohibited from serving as a witness, consultant, expert, or counsel for either party in any future proceedings related to the dispute. Furthermore, the mediation process is considered confidential, with no stenographic, visual, or audio records allowed. All communications made during mediation are privileged and not admissible as evidence in any subsequent proceedings. These confidentiality measures aim to foster open and honest communication during the mediation process, increasing the likelihood of a successful resolution.