If Belocal initiates legal proceedings to enforce the franchise agreement, is the franchisee responsible for paying all associated costs and expenses, including attorneys' fees?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Attorneys' Fees. In the event that Franchisor institutes legal proceedings of any kind to enforce this Agreement, Franchisee agrees to pay all costs and expenses associated therewith, including, but not limited to, all attorneys' fees.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, if Belocal initiates legal proceedings to enforce the franchise agreement, the franchisee is responsible for covering all associated costs and expenses, including attorney's fees. This stipulation is outlined in Item 22, detailing contract terms.
This means that if a franchisee breaches the franchise agreement and Belocal pursues legal action to enforce the agreement, the franchisee will be required to pay for all legal costs incurred by Belocal. These costs include, but are not limited to, attorney fees, court costs, and any other expenses related to the legal proceedings.
This clause is a significant consideration for potential Belocal franchisees. It highlights the importance of adhering to the franchise agreement to avoid potential legal disputes and the associated financial burden. Franchisees should carefully review the franchise agreement and understand their obligations to minimize the risk of legal action by Belocal.