Does the Learningrx franchise agreement specify which party bears the cost of arbitration?

According to Learningrx's 2025 Franchise Disclosure Document, the standard franchise agreement stipulates that if a franchisee is located in California, the costs of arbitration will be borne by both parties.

Specifically, the Multi-State Addendum addresses how the standard Learningrx franchise agreement is modified for California franchisees. This addendum states that the arbitration will occur in Colorado, and the costs associated with arbitration will be borne by both Learningrx and the franchisee. This means that a franchisee in California would be responsible for covering their own legal fees, as well as a portion of the arbitrator's fees and administrative costs.

It is important to note that outside of California, the FDD does not specify which party bears the cost of arbitration. The franchise agreement states that the arbitrator will have the right to award attorney's fees and costs. This suggests that the arbitrator has the discretion to determine which party is responsible for these expenses based on the outcome of the arbitration. A prospective franchisee should seek clarification from Learningrx regarding the typical allocation of arbitration costs in states other than California.