factual

Who pays the mediator fees for Spray Net franchise disputes?

Spray_Net Franchise · 2025 FDD

Answer from 2025 FDD Document

Each party shall bear its own cost of mediation, except that you and Franchisor shall share the mediator's fees and costs equally.

Source: Item 23 — RECEIPTS (FDD pages 75–219)

What This Means (2025 FDD)

According to Spray Net's 2025 Franchise Disclosure Document, in the event that a dispute is submitted to mediation, the mediator's fees and costs will be shared equally between the franchisee and Spray Net. Each party is responsible for covering their own additional costs associated with the mediation process.

This arrangement is fairly typical in franchising, as it encourages both parties to approach mediation with a willingness to find a resolution. Sharing the mediator's fees ensures that neither party is financially burdened by the process, promoting a more balanced and fair negotiation.

It's important to note that Spray Net retains the option to decide whether a claim or dispute is submitted to mediation in the first place. Additionally, there are certain 'Excepted Claims' that are not subject to mandatory mediation, such as disputes involving a franchisee's payment obligations, misuse of confidential information, or violation of proprietary rights. Understanding these exceptions is crucial for a prospective franchisee to assess the potential costs and processes involved in resolving disputes with Spray Net.

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.