How are the arbitration fees shared between Management Recruiters Franchisor and Franchisee?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
Arbitration will take place in Berkeley County, South Carolina, and shall be governed by the laws of the State of South Carolina.
All fees associated with the arbitration shall be equally shared by the Franchisor and Franchisee.
Parties will be entirely responsible for their own attorney's fees.
Arbitration shall be binding and final and judgment may be entered in accordance with applicable law in any court having jurisdiction over the Parties or the subject matter of the arbitration.
Arbitration may not proceed as a class action or any other joint or representative action.
No other arbitration action may be consolidated or joined with
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, in the event of arbitration, all associated fees are to be equally shared between Management Recruiters and the franchisee. This means that both parties will bear the same portion of the costs incurred during the arbitration process. However, each party is individually responsible for covering their own attorney's fees.
This arrangement has significant implications for prospective franchisees. By equally sharing arbitration fees, Management Recruiters shares the financial burden of resolving disputes through arbitration. However, franchisees should be aware that they will be fully responsible for their own legal representation costs, which can be substantial depending on the complexity and duration of the arbitration.
The arbitration will take place in Berkeley County, South Carolina, and will be governed by the laws of the State of South Carolina. Any claims brought under this section must be commenced within one year from the time the aggrieved party first becomes aware of the occurrence of the facts giving rise to such claim or action, or such claim or action shall be barred. Franchisees should consider these factors when evaluating the potential costs and benefits of resolving disputes through arbitration with Management Recruiters.