Under what conditions is the Associate required to pay Bambu's attorneys' fees?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
nt shall not affect adversely any other provisions of this Agreement, which shall otherwise remain in full force and effect.
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- Attorneys' Fees. 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.
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- Definitions. All capitalized terms not defined in this Agreement have the respective meanings set forth in the effective Franchise Agreement between Franchisee and Bambu.
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- Cross Default. A default by Associate under this Agreement will be deemed a default of all agreements between Franchisee and Bambu, unless waived by Bambu in writing.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, an Associate may be required to pay Bambu's attorneys' fees under specific circumstances related to enforcement of the Franchise Agreement. If Bambu or a Franchisee is successful in any legal action or arbitration to enforce the provisions or rights under the agreement, the Associate must pay all costs, expenses, and reasonable attorneys' fees incurred by Bambu or the Franchisee. This includes costs, expenses, and fees associated with any appeals. If Bambu or the Franchisee receives a judgment in such an action, these costs, expenses, and attorneys' fees will be included as part of the judgment.
Additionally, in the event of any dispute between the parties to the agreement, the non-prevailing party in any legal action, arbitration, or other proceeding must pay the prevailing party all amounts due, damages, costs, and expenses, including reasonable attorneys' fees, incurred by the prevailing party in such action or proceeding. This provision reinforces the financial responsibility of the losing party to cover the legal costs of the winning party in dispute resolutions.
These clauses are fairly standard in franchise agreements, designed to protect the franchisor's rights and ensure compliance with the agreement. For a prospective Bambu franchisee, this means understanding the importance of adhering to the franchise agreement and attempting to resolve disputes amicably to avoid potentially significant legal costs if they do not prevail in a dispute. It is advisable to seek legal counsel to fully understand the implications of these clauses before signing the agreement.