When demanding arbitration involving Ledgers, what must your attorney include regarding legal fees?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Your attorney must include in your demand for arbitration an estimate for legal fees ("Budget") necessary to establish liability and damages. The Budget will include the maximum number of: a) witness, b) experts and c) documents. The Arbitrator will evaluate the Budget for proportionality to the Cure. The Budget must be approved by the Arbitrator, before conducting any discovery, or hearings. The Arbitrator must approve any increases in the Budget.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, if a franchisee submits a matter to arbitration, their attorney must include an estimate for legal fees in the demand for arbitration. This estimate, referred to as a "Budget," must detail the legal fees necessary to establish liability and damages.
The Budget must specify the maximum number of witnesses, experts, and documents anticipated for the arbitration. The arbitrator will then evaluate this Budget to ensure it is proportional to the potential resolution or "Cure" of the matter.
Before any discovery or hearings can take place, the arbitrator must approve the Budget. Furthermore, any increases to the Budget also require the arbitrator's approval. This process ensures that legal fees remain reasonable and proportional throughout the arbitration process.