factual

Who is responsible for paying the filing fee imposed by the NFMP for Mr. Sandless mediations?

Mr_Sandless Franchise · 2025 FDD

Answer from 2025 FDD Document

The parties shall each bear their own costs of mediation and shall share equally the filing fee imposed by NFMP and the mediator's fees.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2025 FDD)

According to the 2025 Mr. Sandless Franchise Disclosure Document, in the event of mediation under the National Franchise Mediation Program (NFMP), both the franchisee and Mr. Sandless share the costs. Specifically, the franchisee and Mr. Sandless will equally split the filing fee imposed by the NFMP, as well as the mediator's fees. Each party is responsible for covering their own additional costs associated with the mediation process.

This arrangement means that a franchisee will not be solely responsible for the entire financial burden of mediation filing fees. Instead, they will only be responsible for 50% of the filing fee and 50% of the mediator's fees. This can significantly reduce the upfront costs associated with resolving disputes through mediation.

It is important to note that this cost-sharing arrangement applies specifically to mediation under the NFMP. If disputes are resolved through other means, such as litigation, the cost allocation may be different and determined by applicable law or court order. Franchisees should consider this potential expense when evaluating the overall costs and benefits of investing in a Mr. Sandless franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.