How is the prevailing party determined in a dispute related to the Angry Chickz franchise agreement for the purpose of awarding attorney fees?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
The prevailing party shall be determined by the trier of fact based upon an assessment of which party's major arguments or positions taken in the proceedings could fairly be said to have prevailed over the other party's major arguments or positions on major disputed issues.
For the purposes of this Section, attorney fees shall include fees incurred in the following: (1) post-judgment motions; (2) contempt proceedings; (3) garnishment, levy, and debtor and third party examinations; (4) discovery; and (5) bankruptcy litigation.
This Section is intended to be expressly severable from the other provisions of this Agreement, is intended to survive any judgment and is not to be deemed merged into the judgment.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the prevailing party in any action or proceeding will be determined by the trier of fact. This determination is based on an assessment of which party's major arguments or positions taken in the proceedings could fairly be said to have prevailed over the other party's major arguments or positions on major disputed issues.
This means that if a dispute arises between Angry Chickz and a franchisee, the judge or arbitrator will decide who wins based on whose arguments were stronger on the key points of the case. This determination is important because the prevailing party is entitled to recover attorney fees and costs incurred in enforcing the judgment.
The attorney fees that can be recovered include those incurred in post-judgment motions, contempt proceedings, garnishment, levy, debtor and third-party examinations, discovery, and bankruptcy litigation. This provision is designed to be severable from other parts of the agreement and will survive any judgment, not merging into it.
This clause ensures that the party who wins a legal dispute can recover the costs of litigation, which can be substantial. It also encourages both Angry Chickz and its franchisees to present strong, well-supported arguments in any legal proceedings, as the outcome will determine who bears the financial burden of the legal battle.