Does the definition of 'Losses' for a Bombs Away franchise include attorney's fees?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
"Losses" includes (but is not limited to) all losses; damages; fines; charges; expenses; lost profits; reasonable attorneys' fees; travel expenses, expert witness fees; court costs; settlement amounts; judgments; loss of Bombs Away Franchising's reputation and goodwill; costs of or resulting from delays; financing; costs of advertising material and media time/space and the costs of changing, substituting or replacing the same; and any and all expenses of recall, refunds, compensation, public notices and other such amounts incurred in connection with the matters described.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the definition of 'Losses' does include attorney's fees. Specifically, the FDD states that 'Losses' includes, but is not limited to, various expenses and costs, including reasonable attorneys' fees. This definition is relevant to the franchise agreement and outlines the scope of financial responsibilities a franchisee may face in different situations.
This definition is important for prospective Bombs Away franchisees because it clarifies that if the franchisee is found liable for 'Losses' in certain situations, they may be responsible for covering attorney's fees as part of those losses. The definition of 'Losses' extends beyond just direct damages and encompasses a wide array of potential financial burdens, such as lost profits, court costs, and damage to Bombs Away's reputation.
Understanding the full scope of 'Losses' is crucial for franchisees to assess their potential financial exposure and manage risks effectively. Franchisees should carefully review the franchise agreement and consult with legal counsel to fully understand their obligations and liabilities related to 'Losses' and attorney's fees. This will help them make informed decisions and protect their investment in the Bombs Away franchise.