Franchise Fraud: Hard to Swallow

What you pay for when you lose in arbitration.

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In civil court, the law almost never requires a losing party to cover the winner’s legal costs, let alone its lunch tab. Arbitration is different. Here are the expenses Deborah Williams and Richard Welshans were obliged to pay after losing to Coffee Beanery.

Court reporter/transcription fees: $35,571.24

Holiday Inn conference room: $2,808.16

Arbitrator’s fee: $16,800

Arbitration association fee: $8,500

Past-due franchise royalties: $13,710.16

Cost to deliver, house, and feed opposing witnesses: $2,700.14

Coffee Beanery lawyers’ lunches: $504.25

Beanery lawyers’ commute: $926

Beanery’s legal/accounting fees for arbitration, and for defense against Maryland state investigation, to which the couple was not a party: $105,932.40

Total: $187,452.35

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DONALD TRUMP & DEMOCRACY

Mother Jones was founded to do journalism differently. We stand for justice and democracy. We reject false equivalence. We go after stories others don’t. We’re a nonprofit newsroom, because the kind of truth-telling investigations we do doesn’t happen under corporate ownership.

And we need your support like never before, to fight back against the existential threats American democracy faces. Fundraising for nonprofit media is always a challenge, and we need all hands on deck right now. We have no cushion; we leave it all on the field.

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