In the event of a breach, is B Bops entitled to reimbursement for attorney's fees?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- REMEDIES. In addition to the right to terminate this Agreement, Company shall be
entitled to exercise the following remedies:
- A. Injunctive Relief. Franchisee agrees that in the event of an anticipatory, threatened or actual breach of any of the covenants, agreements, terms or conditions of this Agreement by Franchisee, Company, in addition to any other remedy available hereunder or by law, shall be entitled forthwith to apply for and receive from any court of competent jurisdiction equitable relief by way of restraining order, injunction or otherwise, to prevent a breach of the terms of this Agreement, or by way of specific performance to enforce performance of the terms of this Agreement, plus reimbursement for costs, including attorneys' fees, incurred in the securing of such relief.
- B. Nonperformance by Franchisee. If Franchisee fails to perform any covenant or obligation required to be performed by Franchisee under this Agreement, Company shall be entitled, but shall not be required, to perform the same on behalf of and at the expense of Franchisee, upon giving reasonable prior notice to Franchisee of its intention to do so.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops has the right to reimbursement for attorney's fees in specific instances.
In the event of a breach of the franchise agreement by the franchisee, B Bops is entitled to seek injunctive relief from a court. If B Bops prevails in securing this relief, the franchisee must reimburse B Bops for costs, including attorney's fees, incurred in obtaining the injunction. This means that if a franchisee violates the agreement, B Bops can take legal action to stop the violation and recover the associated legal expenses.
Additionally, if B Bops has to start legal or arbitration proceedings to collect money owed by the franchisee or to enforce the franchise agreement's terms, and B Bops wins, the franchisee must reimburse B Bops for all costs and expenses. These costs include attorney's and accountant's fees, court costs, and investigation costs. This provision ensures that B Bops can recover legal costs if it has to take action against a franchisee to enforce the agreement or collect outstanding payments.
These stipulations are typical in franchise agreements, as they protect the franchisor's interests and ensure they can recover costs associated with enforcing the agreement and protecting their brand. A prospective franchisee should understand these conditions and be aware of the potential financial implications of breaching the franchise agreement.