Who is responsible for paying the expenses incurred by Belocal in enforcing the agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Covenantor agrees to pay all expenses (including court costs and reasonable attorneys' fees and costs) incurred by Franchisor in enforcing this Agreement.
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- Any failure by Franchisor to object to or take action with respect to any breach of any provision of this Agreement by Covenantor will not operate or be construed as a waiver of or consent to that breach or any subsequent breach by Covenantor.
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Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisee, referred to as the Covenantor, is responsible for covering all expenses Belocal incurs while enforcing the franchise agreement. These expenses include court costs, reasonable attorneys' fees, and other associated costs. This obligation is outlined within the contracts section of the FDD.
This means that if Belocal has to take legal action against a franchisee to enforce the terms of the agreement, the franchisee will be required to pay Belocal's legal bills in addition to any other penalties or damages assessed by the court. This could include breaches related to non-compliance, operational standards, or any other violation of the franchise agreement.
Furthermore, the Principal, if different from the Owner, also agrees to cover all reasonable attorney's fees, costs, and expenses Belocal incurs while collecting amounts due or enforcing the undertaking against the Principal. This stipulation extends the financial responsibility for enforcement costs beyond just the franchisee to include the Principal, ensuring Belocal has multiple avenues for recovering enforcement expenses.