When is a Best Brains franchisee required to reimburse the franchisor for attorneys' fees?

According to Best Brains' 2025 Franchise Disclosure Document, a franchisee's obligation to reimburse Best Brains for court costs or expenses, including attorneys' fees, is contingent upon Best Brains being the prevailing party in any judicial or arbitration proceeding. This means that unless Best Brains wins the legal action, the franchisee is not required to cover their legal costs. This condition is specifically applicable in Washington state, as indicated by the reference to RCW (Revised Code of Washington) 19.100.180(1).

This stipulation offers a degree of protection to franchisees, ensuring they are not automatically responsible for Best Brains' legal expenses unless Best Brains achieves a favorable outcome in the dispute. It aligns with a broader modification detailed in the FDD, which adjusts any indemnification provisions to ensure franchisees are not liable for losses or liabilities resulting from Best Brains' negligence, willful misconduct, strict liability, or fraud. This demonstrates a balanced approach to risk allocation between the franchisor and franchisee.

However, prospective franchisees should be aware that this protection may be limited to the legal jurisdiction of Washington state, based on the document excerpts provided. Franchisees operating outside of Washington may be subject to different terms regarding the reimbursement of legal fees. It is important for potential franchisees to fully understand the legal and financial implications related to attorney fee reimbursement, specifically within the context of their operating location, and to seek clarification from Best Brains regarding the applicability of these terms outside of Washington.