In a dispute with Marble Slab Creamery, who is responsible for paying their own legal fees and expenses during arbitration?

According to the 2025 Marble Slab Creamery FDD, in the event of arbitration, each party (the franchisee and Marble Slab Creamery) will bear their own legal fees and expenses. The fees and expenses of the Arbitration Association and the arbitrators will be paid by such party or parties as the arbitrators determine. This means that a franchisee entering into arbitration with Marble Slab Creamery will be responsible for covering their own attorney fees, expert witness costs, and other legal expenses associated with presenting their case. The arbitrator(s) will decide who pays for the arbitration itself.

This arrangement differs from standard litigation, where the prevailing party can sometimes recover legal fees from the losing party. The FDD specifies that this applies to disputes arising out of or related to the Franchise Agreement, except for claims regarding Marble Slab Creamery's trademarks, enforcement of a specific section (Section 9), or monies owed to Marble Slab Creamery.

Prospective franchisees should carefully consider the implications of this clause. Arbitration can be a costly process, and the franchisee will need to be prepared to cover their own legal expenses, regardless of the outcome. It is advisable to consult with an attorney to fully understand the dispute resolution process and potential costs before signing the Franchise Agreement. Understanding this allocation of legal costs is crucial for budgeting and risk assessment when investing in a Marble Slab Creamery franchise.