Does the Better Blend Guaranty cover reasonable attorney's fees incurred by BBF?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor shall pay to BBF all costs incurred by BBF (including reasonable
attorney fees) in enforcing this Guaranty. If multiple Guarantors sign this Guaranty, each will have joint and several liability.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Guaranty does cover reasonable attorney's fees incurred by Better Blend Franchising, LLC (BBF). The Guarantor is responsible for paying all costs incurred by BBF, including reasonable attorney fees, when BBF is enforcing the Guaranty. If there are multiple Guarantors, each of them will be held jointly and severally liable, meaning each guarantor is individually liable for the full amount of the debt.
This means that if a franchisee defaults on their obligations and BBF has to take legal action to enforce the Guaranty, the guarantor(s) will be responsible for covering BBF's legal costs, including reasonable attorney's fees. This could potentially be a significant financial burden for the guarantor, depending on the complexity and length of the legal proceedings.
This is a fairly standard practice in franchising, as franchisors typically want to ensure they can recover legal costs associated with enforcing agreements. Prospective franchisees and their guarantors should carefully review the Guaranty and understand the full extent of their obligations, including the potential for covering BBF's attorney's fees. It would be prudent to consult with a legal professional to fully understand the implications of this clause before signing the Guaranty.