What is included in Azal Coffee's enforcement costs that the Guarantor must reimburse?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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- If Franchisor is required to enforce this Guaranty in any judicial or arbitration proceeding or any appeals, each Guarantor, jointly and severally, must reimburse Franchisor for its enforcement costs. Enforcement costs include actual accountants', attorneys', attorney's assistants', arbitrators' and expert witness fees, costs of investigation and proof of facts, court costs, arbitration filing fees, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for, or in contemplation of the filing of any written demand, claim, action, hearing or proceeding to enforce this Guaranty.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, if Azal Coffee is required to enforce the Guaranty in any judicial or arbitration proceeding or any appeals, each Guarantor must reimburse Azal Coffee for its enforcement costs. These enforcement costs include several specific items.
The costs that the Guarantor must reimburse to Azal Coffee encompass actual accountants' fees, attorneys' fees, attorney's assistants' fees, arbitrators' fees, and expert witness fees. Additionally, the Guarantor is responsible for covering the costs of investigation and proof of facts, which can include expenses related to gathering evidence and presenting it in court or arbitration.
Furthermore, the Guarantor must reimburse Azal Coffee for court costs, arbitration filing fees, other litigation expenses, and travel and living expenses. These costs can be incurred prior to, in preparation for, or in contemplation of the filing of any written demand, claim, action, hearing, or proceeding to enforce the Guaranty. This means that even preliminary expenses related to a potential enforcement action are the responsibility of the Guarantor.