In the event of a breach, can B Bops seek 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 seek reimbursement for attorney's fees from franchisees in certain situations. Specifically, if a franchisee breaches the franchise agreement, B Bops is entitled to seek injunctive relief, such as a restraining order or injunction, to prevent the breach or enforce the agreement. In such cases, B Bops can also seek reimbursement for costs, including attorney's fees, incurred in securing this relief.
Additionally, if B Bops has to take legal or arbitration action to collect money owed by the franchisee or to enforce the franchise agreement's terms, and B Bops prevails, the franchisee must reimburse B Bops for all costs and expenses. This includes attorney's and accountant's fees, court costs, and investigation costs. This provision ensures that B Bops can recover expenses incurred while enforcing the agreement and protecting its interests.
These stipulations are typical in franchise agreements, as they aim to protect the franchisor's investment and brand standards. For a prospective B Bops franchisee, this means understanding that any breach of the franchise agreement could lead to financial responsibility for B Bops's legal costs, in addition to other potential damages or penalties. Franchisees should, therefore, ensure they fully understand and comply with all terms of the franchise agreement to avoid such situations.