Regarding Bft, can the right to recover post-arbitration award and post-judgment expenses, costs, and attorneys' fees be severed and survive any award or judgment?
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.
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, the right to recover post-arbitration award and post-judgment expenses, costs, and attorneys' fees can be severed and will survive any award or judgment. This means that even after an arbitration award or court judgment is issued, the prevailing party retains the right to pursue the recovery of expenses, costs, and attorneys' fees incurred after the arbitration award or judgment. This right is separate and distinct and does not merge into the judgment itself.
For a prospective Bft franchisee, this is a beneficial provision. It ensures that if they win a legal dispute with Bft, they can recover not only the initial costs of the dispute but also the additional expenses incurred in enforcing the arbitration award or judgment. This can include further legal action needed to collect the awarded amounts.
This clause provides an added layer of protection for the prevailing party, as it acknowledges that the legal process may not end with the initial judgment or award. It allows for the recovery of costs associated with enforcing the decision, which can be significant. This is particularly important because enforcing a judgment can sometimes be a lengthy and costly process, and this provision ensures that the prevailing party is not left bearing those costs.