In Ledgers arbitration, who is responsible for paying the initiation fees?

According to Ledgers' 2025 Franchise Disclosure Document, in the event that a matter is resolved through arbitration, each party is responsible for their own costs, including attorney's fees and expert witness fees. The cost of the mediator or arbitrator will be shared equally between the parties, except for the initiation fees. The FDD does not specify which party is responsible for paying the initiation fees.

Since the document does not specify who is responsible for paying the initiation fees, prospective Ledgers franchisees should seek clarification from the franchisor regarding responsibility for these fees during arbitration. Understanding this allocation of costs is crucial for budgeting and assessing the financial implications of potential disputes.

It is common in franchising for the franchise agreement to specify how arbitration costs are divided. Typically, the agreement will state that the parties split the costs evenly, or that the arbitrator decides how the costs are divided. The fact that the Ledgers FDD does not specify who is responsible for paying the initiation fees is unusual, and prospective franchisees should seek clarification from the franchisor.