Who bears the costs of mediation for Mr. Sandless disputes?

According to Mr. Sandless's 2025 Franchise Disclosure Document, in the event of mediation between the franchisee and franchisor, both parties share the costs. Specifically, the franchisee and Mr. Sandless each bear their own costs of mediation. They also equally share the filing fee imposed by the National Franchise Mediation Program (NFMP) and the mediator's fees.

This arrangement means that a franchisee entering into a dispute with Mr. Sandless will need to budget for their own legal and consulting costs, as well as half of the expenses related to the mediator's time and the administrative fees charged by the NFMP. This is a fairly standard arrangement in franchising, as it ensures both parties have a financial stake in reaching a resolution through mediation.

It is important to note that mediation is not necessarily the final step. The FDD states that before commencing any legal action against Mr. Sandless, the franchisee must submit a notice detailing the dispute. Mr. Sandless then has 30 days to decide whether to submit the claim to mediation. Only if Mr. Sandless declines mediation or the mediation is terminated without resolution can the franchisee pursue legal action. This mediation clause and cost-sharing arrangement are designed to encourage efficient and cost-effective dispute resolution before resorting to litigation.