Does the right to recover post-arbitration award and post-judgment expenses survive any award or judgment for Bft?
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 survives any award or judgment. Specifically, if Bft prevails in an arbitration or legal action to enforce the franchise agreement, it is entitled to recover expenses, costs, and reasonable attorneys' fees incurred in connection with enforcing the arbitration award or judgment.
This right is separate from the general right to recover expenses in the initial legal proceeding. The FDD states that the right to recover these post-award expenses is severable and survives any award or judgment, meaning it doesn't merge into the judgment itself. This ensures that Bft can pursue further recovery of expenses incurred while enforcing the initial judgment.
For a prospective franchisee, this clause means that if they lose an arbitration or legal battle with Bft, their financial obligations could extend beyond the initial judgment to include the costs Bft incurs while enforcing that judgment. This could significantly increase the franchisee's financial burden in the event of an unfavorable outcome.