Does the responsibility for covering Better Blend's collection costs include attorney's fees?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) Costs of Collection and Enforcement. Franchisee shall repay any costs incurred by BBF in attempting to collect payments owed by Franchisee or to enforce any other provision of this Agreement (including without limitation, reasonable attorney fees).
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are responsible for covering collection costs, including attorney's fees. Specifically, if Better Blend incurs costs while trying to collect payments or enforce any provision of the Franchise Agreement, the franchisee must repay those costs. This includes reasonable attorney fees, meaning that if Better Blend has to take legal action to recover owed payments or enforce the agreement, the franchisee will be responsible for covering Better Blend's legal expenses.
This could significantly increase the financial burden on a franchisee who is already struggling to make payments. It's not just the original debt that the franchisee would be responsible for, but also any legal fees Better Blend incurs in the process of trying to recover that debt. This provision is fairly standard in franchise agreements, as it protects the franchisor from incurring losses due to franchisees not meeting their financial obligations or breaching the agreement.
Prospective franchisees should be aware of this clause and factor it into their financial planning. It's crucial to maintain good financial standing and adhere to the terms of the franchise agreement to avoid triggering such collection and enforcement actions. Understanding this responsibility is essential for managing the financial risks associated with owning a Better Blend franchise.