How are disputes related to the Afuri Ramen Dumpling agreement resolved?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ts will entitle us, in addition to all other remedies available at law or equity, to recover from you any and all funds, including wages, salary, and profits, which will be held by you in constructive trust for us, received by you in connection with such violation.
- 9.8.7 Attorneys' Fees. The prevailing party in any arbitration, insolvency proceeding, bankruptcy proceeding, suit, or action to enforce this Agreement will recover its arbitration, proceeding, and court costs and reasonable attorneys' fees. These will be set by the arbitration, proceeding or court, including costs and attorneys' fees on appeal or review from the arbitration, proceeding, suit, or action. "Prevailing party" means the party who recovers the greater relief in the proceeding.
- 9.9 Other Agreements.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the prevailing party in any arbitration, insolvency, or bankruptcy proceeding, or any suit or action to enforce the Franchise Agreement, is entitled to recover their arbitration, proceeding, and court costs, including reasonable attorneys' fees. These costs and fees will be determined by the arbitration, proceeding, or court, encompassing expenses incurred during appeals or reviews. The "prevailing party" is defined as the party who achieves the greater relief in the legal action.
This clause means that if an Afuri Ramen Dumpling franchisee is involved in a dispute with the franchisor and takes legal action, the franchisee could be responsible for covering not only their own legal costs but also those of Afuri Ramen Dumpling if the franchisor prevails in court. Conversely, if the franchisee wins, Afuri Ramen Dumpling would be responsible for the franchisee's legal fees and costs. This arrangement aims to ensure that both parties carefully consider the merits of their case before initiating legal proceedings.
It is important to note that if any provision within the Franchise Agreement exceeds legal limits regarding duration, geographic coverage, or other aspects, the provision will be interpreted and enforced to the maximum extent permitted by law or a court of law. This ensures that the agreement remains binding and enforceable as much as possible, even if certain parts are found to be overly broad or restrictive. This lawful scope provision protects Afuri Ramen Dumpling by ensuring the agreement remains as enforceable as possible.
Prospective Afuri Ramen Dumpling franchisees should carefully consider the implications of this clause, as it can significantly impact the financial burden associated with any legal disputes. Understanding the criteria for determining the prevailing party and the potential for covering extensive legal costs is crucial before entering into the franchise agreement.