What costs are included in the attorneys' fees that the Associate may be required to pay Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If Bambu or Franchisee must enforce any of the provisions or rights under this Agreement in any action at law or in equity and if the Bambu and/or Franchisee is successful in such litigation or arbitration as determined by the court or arbitrator in a final judgment or decree, then the Associate shall pay Bambu or Franchisee, as applicable, all costs, expenses and reasonable attorneys' fees incurred by Bambu and/or Franchisee (including without limitation such costs, expenses and fees on any appeals), and if Bambu and/or Franchisee receives a judgment in any such action or proceeding, such costs, expenses and attorneys' fees shall be included as part of such judgment.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if the franchisor or franchisee successfully enforces the franchise agreement in legal or arbitration proceedings, the associate (which appears to be the franchisee based on context) is responsible for covering all costs, expenses, and reasonable attorneys' fees incurred by Bambu. This includes, but isn't limited to, costs, expenses, and fees associated with any appeals.
In practical terms, this means that if Bambu has to take legal action to enforce the franchise agreement and wins, the franchisee will have to pay not only their own legal costs but also Bambu's. This could include expenses related to court filings, attorney time, expert witnesses, and other related costs. The FDD specifies that these costs, expenses, and attorneys' fees will be included as part of the judgment if Bambu receives one in such action or proceeding.
This provision is fairly standard in franchise agreements, as it aims to protect the franchisor's interests and ensure compliance with the agreement. However, it also places a significant financial risk on the franchisee, as legal battles can be expensive. Franchisees should, therefore, carefully consider the terms of the franchise agreement and seek legal advice before signing to fully understand their obligations and potential liabilities.