What costs and expenses are included in the reimbursement for the substantially prevailing party in an enforcement proceeding of the Beverly Anns Cookie Franchise Agreement?

According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a franchisee breaches any term of the Franchise Agreement, they must reimburse Beverly Anns Cookie for all reasonable attorneys' fees and other expenses incurred. This means that if Beverly Anns Cookie wins a legal case against a franchisee for violating the agreement, the franchisee is responsible for covering Beverly Anns Cookie's legal costs.

This provision is fairly standard in franchise agreements, as it aims to protect the franchisor from financial losses incurred while enforcing the agreement. The franchisee's obligation to cover these costs can include not only the attorneys' fees but also other related expenses that Beverly Anns Cookie incurs during the legal proceedings.

However, a provision in the franchise agreement states that if Beverly Anns Cookie requires a franchisee to reimburse them for court costs or expenses, including attorneys' fees, such provision applies only if Beverly Anns Cookie is the prevailing party in any judicial or arbitration proceeding. This clause ensures that the franchisee is only responsible for these costs if Beverly Anns Cookie wins the case.

It is important for a prospective Beverly Anns Cookie franchisee to understand this clause, as it could represent a significant financial burden if they are found to be in breach of the agreement and Beverly Anns Cookie prevails in court. Franchisees should ensure they fully comply with all terms of the Franchise Agreement to avoid potential legal disputes and the associated costs.