Under what circumstances must a franchisee reimburse Aw for costs and attorney's fees?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE1,3 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| omissions, our enforcement of this Agreement, our defense of our actions taken under this Agreement or your breach of the Franchise Agreement. | |||
| Costs and Attorney's Fees | Will vary under circumstances | As incurred | You must reimburse us for costs and attorney's fees we incur in actions against you to enforce the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, a franchisee must reimburse Aw for costs and attorney's fees under specific circumstances related to the enforcement of the Franchise Agreement. Specifically, if Aw takes legal action against a franchisee to enforce the Franchise Agreement, the franchisee is responsible for covering Aw's associated costs and attorney's fees. The exact amount of these costs and fees will vary depending on the specifics of each situation. These costs are due as they are incurred.
This provision means that if a franchisee violates the terms of the Franchise Agreement, necessitating legal action by Aw to enforce compliance, the franchisee will not only be responsible for rectifying the violation but also for covering Aw's legal expenses. This could include a range of issues, such as failure to meet brand standards, non-payment of royalties, or unauthorized transfer of the franchise.
It is important for prospective Aw franchisees to understand the scope of the Franchise Agreement and ensure they can comply with its terms to avoid potential legal action and the associated financial burden of reimbursing Aw for costs and attorney's fees. This is a fairly standard clause in franchise agreements, intended to protect the franchisor's interests and ensure franchisees adhere to the agreed-upon terms. Franchisees should carefully review the Franchise Agreement with legal counsel to fully understand their obligations and potential liabilities.