Besides recovering expenses in legal proceedings or arbitration, what additional entitlements does the prevailing party have regarding Bft, as permitted by applicable law?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Separate and distinct from the right of a prevailing Party to recover expenses, costs and fees in connection with any legal proceeding or arbitration, the prevailing Party shall also be entitled to receive all expenses, costs and reasonable attorneys' fees incurred in connection with the enforcement of any arbitration award or judgment entered, to the extent permitted by applicable law. Furthermore, the right to recover post-arbitration award and post judgment expenses, costs and attorneys' fees shall be severable and shall survive any award or judgment and shall not be deemed merged into such judgment.
E. Other Proceedings (Right to Injunctive Relief). Nothing in this Agreement, including the provisions of Sections 12.B through 12.D, bars a Party's right to seek and obtain in any court of competent jurisdiction injunctive or other equitable relief against actual or threatened conduct that it believes is likely to cause loss or damage to its trademarks (including the Marks), its proprietary information, or its systems (including the System), in each case, under customary equity rules, including applicable rules for obtaining restraining orders and injunctions. Each Party agrees that the other may obtain such injunctive relief in addition to such further or other relief as may be available at law or in equity. The Parties agree that the Party seeking injunctive relief pursuant to this Section will not be required to post a bond to obtain injunctive relief and that the only remedy for a Party if an injunction is entered against it will be the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by injunction being expressly waived hereby).
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, in addition to recovering expenses, costs, and fees related to legal proceedings or arbitration, the prevailing party is entitled to receive all expenses, costs, and reasonable attorneys' fees incurred while enforcing any arbitration award or judgment entered, as permitted by applicable law. This right to recover post-arbitration award and post-judgment expenses, costs, and attorneys' fees is severable and survives any award or judgment, and is not deemed merged into such judgment.
Bft also states that nothing in the agreement bars a party's right to seek and obtain injunctive or other equitable relief in any court of competent jurisdiction against actual or threatened conduct that it believes is likely to cause loss or damage to its trademarks, proprietary information, or its systems, including the System, under customary equity rules, including applicable rules for obtaining restraining orders and injunctions. Each party agrees that the other may obtain such injunctive relief in addition to such further or other relief as may be available at law or in equity. The party seeking injunctive relief is not required to post a bond to obtain injunctive relief, and the only remedy for a party if an injunction is entered against it will be the dissolution of that injunction, if warranted, upon due hearing; all claims for damages by injunction are expressly waived.
These provisions mean that a prevailing party in a dispute with Bft can potentially recover significant costs beyond just the initial legal fees, including those incurred while enforcing a judgment. The ability to seek injunctive relief without posting a bond can be a powerful tool for protecting Bft's brand and system. However, franchisees should be aware of the waiver of punitive damages and the agreement to limit recovery to actual damages, which could impact the overall financial outcome of a dispute.