Under the Benihana franchise agreement, who is responsible for their own attorneys' fees in the event of arbitration?

According to Benihana's 2024 Franchise Disclosure Document, in the event of any legal action or arbitration between Benihana National Corp (BNC) and a franchisee, each party is responsible for covering their own attorneys' fees, expert witness fees, and other related costs. This arrangement applies unless explicitly stated otherwise within the franchise agreement.

This means that a Benihana franchisee should anticipate bearing their own legal expenses if a dispute arises that leads to legal action or arbitration with Benihana. This includes not only the fees for their attorney but also any costs associated with expert witnesses they may need to hire to support their case, as well as other court or arbitration-related expenses.

However, it's important to note that this general rule may have exceptions as indicated by the phrase "Except as otherwise provided." Franchisees should carefully review their franchise agreement to identify any specific situations where this cost allocation might differ. For instance, the agreement might stipulate that in certain types of disputes, the losing party is responsible for covering the legal fees of the prevailing party. Therefore, prospective franchisees need to be aware of the potential financial burden of legal disputes and understand the specific terms outlined in their agreement.