Mediation in franchise disputes: what the sources say about fees and effect
Where mediation shows up in the disclosure document, the AAA's per-party filing fee, one court program that is free, and what the sources do not say.
Mediation is a process in which a neutral person helps the two sides try to reach agreement. The mediator does not decide the dispute. The sections below cover where mediation is disclosed, what it can cost, and what it does and does not do. It cannot say whether your agreement requires it.
Finding it in your papers
Item 17 of the franchisor's disclosure document has a row titled "Dispute resolution by arbitration or mediation," next to rows for choice of forum and choice of law. The FTC's consumer guide says Item 17 states whether you have the right to go to court or must use arbitration instead. The agreement itself is what counts, and the rule says to read the provisions there. See Item 17 of the FDD.
Washington's franchise regulator has stated that it will not register a franchise offering whose agreement sets arbitration or mediation outside Washington unless the site is in Washington, mutually agreed at the time, or set by the arbitrator or mediator. That shows mediation locations are also governed by state law in some places.
What it can cost
Fees depend on the provider and the case, and no source read gives a typical franchise mediation cost. The examples below are each provider's own published figures.
- American Arbitration Association (AAA): each party pays a $350 non-refundable mediation filing fee, in addition to the mediator's compensation (schedule effective June 1, 2026).
- JAMS: its published arbitration fee page says the hourly rate is set by the individual neutral and adds a 13 percent case management fee on professional fees. That page covers arbitration, not mediation. JAMS lists a fixed $1,100 per party mediation price only for a narrow virtual program covering personal injury, property insurance and co-tenant disputes, not franchise disputes.
- One federal court: the District Court for the District of Columbia's mediation program is offered without fees or charges to the parties, according to its 2018 FAQs. Programs and fees differ by court.
What mediation does to your other options
In the D.C. federal program, according to its FAQs, mediation is informal, confidential and voluntary, the mediator "has no power to render a decision or require a settlement," and if there is no settlement "the case remains in litigation, and discovery and motion practice rights are fully preserved." That describes one court's program, not every mediation. If a franchise agreement requires mediation first, its terms govern.
The sources read do not say whether starting mediation pauses a cure period or a termination date, so do not assume it does. Your notice and agreement state your dates. For the other dispute routes and their costs, see franchise arbitration clause explained, arbitration costs and AAA fees and going to court: costs and timing. A lawyer licensed in your state can advise on which applies.
Where this came from
- 16 CFR 436.5(q), Item 17 (checked 28 October 2026).
- FTC, A Consumer's Guide to Buying a Franchise (checked 28 October 2026).
- AAA-ICDR Commercial Fee Schedule (checked 28 October 2026).
- JAMS, Arbitration Schedule of Fees and Costs (checked 28 October 2026).
- JAMS, Endispute Southern California Alternative Fee Program (checked 28 October 2026).
- U.S. District Court for D.C., Mediation Program FAQs (checked 28 October 2026).
- Washington DFI, Interpretive Statement FIS-04 (checked 28 October 2026).