How is the 'prevailing party' defined in the Better Blend franchise agreement with respect to legal costs?

According to Better Blend's 2024 Franchise Disclosure Document, in any legal proceeding related to the Franchise Agreement or any guaranty, the non-prevailing party is responsible for paying the prevailing party's attorney fees and costs. This applies to all legal proceedings, including arbitration.

For a prospective Better Blend franchisee, this means that if a legal dispute arises with Better Blend and the franchisee loses the case, they will be responsible for covering Better Blend's legal costs in addition to their own. Conversely, if the franchisee wins, Better Blend would have to pay the franchisee's legal fees. This allocation of legal costs can significantly impact the financial burden of a legal dispute.

It is important to note that the determination of who is the 'prevailing party' is made by the court or arbitrator based on the outcome of the case. Franchisees should carefully consider this provision and its potential financial implications before entering into a Franchise Agreement with Better Blend. Understanding this clause is crucial for assessing the overall risk associated with the franchise.