Regarding Ledgers arbitration, what is required if there are any increases in the legal fee Budget?
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' 2025 Franchise Disclosure Document, if a franchisee submits a matter to arbitration, their attorney must include an estimate for legal fees, referred to as a "Budget," in the demand for arbitration. This Budget should detail the maximum number of witnesses, experts, and documents anticipated.
The arbitrator will assess whether the Budget is proportional to the potential resolution or "Cure" of the issue. Before any discovery or hearings take place, the Budget requires approval from the Arbitrator.
Specifically, the FDD states that the Arbitrator must also approve any increases to the initially approved Budget. This requirement ensures that legal fees remain reasonable and proportional throughout the arbitration process, protecting both the franchisee and Ledgers from excessive costs.