Does the cost of collecting amounts owed to Better Blend include attorney fees?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $500 per instance | On demand | We may charge you $500 for any aspect | |
| of your business which is not in | |||
| compliance with our system specifications | |||
| or the franchise agreement and you fail to | |||
| correct the non-compliance after 30 days’ | |||
| notice. Thereafter, we may charge you | |||
| $250 per week until you correct such non- | |||
| compliance. | |||
| Amount that we | If we pay any amount that you owe or are | ||
| spend on your | required to pay to a third party, you must | ||
| behalf, plus 10% | reimburse us. | ||
| $100 plus interest on | We may charge a late fee if you fail to | ||
| the unpaid amount at | make a required payment when due. | ||
| a rate equal to 18% | |||
| per year (or, if such | |||
| payment exceeds the | |||
| maximum allowed | |||
| by law, then interest | |||
| at the highest rate | |||
| allowed by law) | |||
| $30 (or, if such | |||
| amount exceeds the | |||
| maximum allowed | |||
| by law, then the | |||
| maximum allowed | |||
| by law) | |||
| Our actual costs | Payable if we incur costs (including | ||
| reasonable attorney fees) in attempting to | |||
| collect amounts you owe to us, or | |||
| otherwise enforcing your franchise | |||
| agreement. | |||
| If we conduct a national or regional | |||
| meeting or convention, we will charge | |||
| you the attendance fee even if you do not | |||
| attend. You are responsible for all travel | |||
| and living expenses of attending any such | |||
| meeting or convention. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the costs of collecting amounts owed to Better Blend can include attorney fees. Specifically, if Better Blend incurs costs, including reasonable attorney fees, while trying to collect amounts a franchisee owes, the franchisee is responsible for paying those costs. This provision ensures that Better Blend can recover expenses associated with debt collection.
Additionally, in any legal proceeding, including arbitration, the losing party is responsible for covering the prevailing party's attorney fees, court costs, and other expenses. This clause further protects Better Blend's financial interests in legal disputes.
These stipulations are fairly standard in franchise agreements, as they aim to protect the franchisor from financial losses incurred while enforcing the franchise agreement and collecting debts. Prospective Better Blend franchisees should be aware of these potential costs and ensure they maintain good financial standing to avoid such fees.