Under what circumstances will Aw franchisees have to 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, franchisees must reimburse Aw for costs and attorney's fees in specific circumstances. The franchisee is responsible for reimbursing Aw for costs and attorney's fees Aw incurs when taking actions against the franchisee to enforce the Franchise Agreement.
The amount of these costs and attorney's fees will vary depending on the specific circumstances of each case. These costs are due as they are incurred by Aw. This means a franchisee could face unpredictable and potentially substantial expenses if they are found to be in breach of their Franchise Agreement with Aw, leading to legal action.
It is typical in franchising for the franchisee to bear the franchisor's legal costs in cases where the franchisee is in breach of contract. This clause in the Aw franchise agreement serves as a deterrent against non-compliance and protects Aw's interests by ensuring they can recover expenses associated with enforcing the agreement. Prospective franchisees should carefully review the Franchise Agreement to understand what constitutes a breach and what actions could trigger this reimbursement obligation.