Who advances the filing fee for arbitration claims or counterclaims related to an Amorino franchise, and how are arbitration expenses handled?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- I. Attorneys' Fees. Should either party commence any action or proceeding for the purpose of enforcing, or preventing the breach of, any provision hereof, whether by arbitration, judicial or quasi-judicial action or otherwise, or for damages for any alleged breach of any provision hereof, or for a declaration of such party's rights or obligations hereunder, the prevailing party in any such action shall have the right to recover from the other party or parties its reasonable attorneys' fees, court costs and expenses of litigation.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
Based on the 2025 Amorino Franchise Disclosure Document, in the event of arbitration, the prevailing party is entitled to recover reasonable attorneys' fees, court costs, and expenses of litigation from the other party. This applies whether the action is pursued through arbitration, judicial, or quasi-judicial means. This provision aims to ensure that the party who succeeds in the legal action is not unduly burdened by the costs associated with enforcing their rights or defending against a breach of the franchise agreement.
This arrangement has significant implications for prospective Amorino franchisees. It means that if a franchisee is successful in an arbitration claim against Amorino, Amorino would be responsible for covering the franchisee's legal costs. Conversely, if Amorino prevails, the franchisee would be responsible for Amorino's legal costs. This creates a financial risk for both parties and underscores the importance of carefully evaluating the merits of any potential claim before initiating arbitration.
It is important to note that the FDD does not specify who initially advances the filing fees or other administrative costs associated with initiating an arbitration. The FDD only specifies that the prevailing party can recover attorneys' fees, court costs, and expenses of litigation. A prospective franchisee should seek clarification from Amorino regarding the procedures for initiating arbitration and how the initial costs are handled. Understanding these details is crucial for assessing the potential financial risks and obligations associated with the arbitration process.