Does the reimbursement of costs to B Bops in a legal proceeding depend on B Bops prevailing in the proceeding?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Costs and Attorney's Fees.
If Company or any affiliate thereof is required to institute any legal or arbitration proceeding to collect any amounts owing from Franchisee or to enforce the terms of this Agreement and if Company or such affiliate prevails in such proceeding, Company or such affiliate shall be entitled to reimbursement from Franchisee of its costs and expenses incurred in connection therewith, including attorneys' or accountants' fees, court costs and costs of investigation.
ARBITRATION.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, whether a franchisee must reimburse B Bops for costs incurred in legal or arbitration proceedings depends on the specific type of proceeding. If B Bops initiates a legal or arbitration proceeding to collect amounts owed by the franchisee or to enforce the terms of the franchise agreement, the franchisee is only required to reimburse B Bops' costs and expenses, including attorney's fees, if B Bops prevails in the proceeding.
However, if the franchisee breaches any covenants, agreements, terms, or conditions of the franchise agreement, B Bops is entitled to seek equitable relief, such as a restraining order or injunction, and is entitled to reimbursement for costs, including attorneys' fees, incurred in securing such relief, regardless of whether B Bops ultimately prevails.
This means that a B Bops franchisee could be responsible for B Bops' legal costs even if the franchisee's position is ultimately vindicated in certain types of disputes. It is important for a prospective franchisee to understand the circumstances under which they might be liable for B Bops' legal expenses, even if they do not ultimately lose the legal battle.