Does the Body20 agreement specify which party is responsible for attorney's fees in the event of a dispute?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
arbitration proceeding between us and any other person. Notwithstanding the foregoing or anything to the contrary in this Section 16.3, if any court or arbitrator determines that this prohibition on class-wide arbitration is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Section 16.3, then the parties agree that this arbitration clause shall not apply to that dispute and that such dispute will be resolved in a judicial proceeding in accordance with Section 16.3(d) (Excepted Disputes).
- (c) Relief. The arbitrator has the right to award or include in his or her award any relief which he or she deems proper, including money damages (with interest on unpaid
amounts from the date due), specific performance, injunctive relief, and attorneys' fees (on a solicitor and its own client basis) and costs, provided that the arbitrator may declare any Mark generic or otherwise invalid or, except as expressly provided in Section 16.5 (Mutual Waiver of Punitive Damages), award any special, consequential, exemplary, or punitive damages against either party (we and you hereby waiving to the fullest extent permitted by law, except as expressly provided in Section 16.5 below, any right to or claim for any special, consequential, exemplary, or punitive damages against the other).
- (d) Excepted Disputes. The following disputes will not be resolved through arbitration unless we consent to arbitration: (i) disputes that arise under or are related to the Lanham Act, as now or later amended; (ii) disputes that otherwise relate to the ownership or validity of any of the Intellectual Property; (iii) disputes that involve enforcement of our intellectual property rights or protection of our Proprietary Information; or (iv) disputes related to the payment of sums you owe us or our affiliates.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to the 2025 Body20 Franchise Disclosure Document, the franchise agreement outlines specific conditions regarding the responsibility for attorney's fees in the event of disputes. In general, Body20 may seek reimbursement from the franchisee for all expenses, including reasonable attorney's fees, if Body20 has to take legal action to enforce the agreement and prevails on the merits.
Specifically, the franchisee agrees to reimburse Body20 for all expenses, including attorney's fees, reasonably incurred by Body20 and its affiliates to enforce the terms of the agreement or any obligation owed by any of the Franchisee Parties, regardless of whether a legal proceeding is initiated, unless Body20 initiates and fails to substantially prevail in such court or formal legal proceeding. The franchisee also agrees to cover expenses incurred by Body20 in defending against any claim asserted by any of the Franchisee Parties, provided Body20 substantially prevails in court or other formal legal proceedings.
Conversely, Body20 will reimburse the franchisee for all reasonable expenses, including attorney's fees, if the franchisee has to enforce the terms of the agreement or any obligation owed to them by Body20, unless the franchisee initiates and fails to substantially prevail in such court or formal legal proceeding. Body20 will also cover expenses incurred by the franchisee in defending against any claim Body20 asserts against them, provided the franchisee substantially prevails in court or other formal legal proceedings. Furthermore, in arbitration proceedings, the arbitrator has the right to award attorney's fees on a solicitor and its own client basis.