Do the legal cost obligations for Bombs Away extend to legal proceedings related to a guaranty?

According to Bombs Away's 2024 Franchise Disclosure Document, the non-prevailing party in any legal proceeding related to the franchise agreement or any guaranty associated with it is responsible for covering the prevailing party's attorney fees, costs, and other legal expenses. This obligation extends specifically to legal proceedings involving a guaranty. The prevailing party is defined as the party that obtains substantial relief on the central issues litigated.

This means that if a Bombs Away franchisee or their guarantor is involved in a legal dispute with Bombs Away (or vice versa) concerning the franchise agreement or the guaranty, the party that loses the case will be required to pay the legal costs of the winning party. This could include attorney fees, court costs, and other related expenses. This provision aims to discourage frivolous lawsuits and ensure that the party in the right is not financially burdened by legal costs.

For a prospective Bombs Away franchisee, this clause highlights the importance of understanding the franchise agreement and any related guaranty thoroughly. It also underscores the potential financial risk associated with legal disputes. Before signing the franchise agreement and guaranty, franchisees should seek legal counsel to fully understand their rights and obligations and the potential costs associated with any legal proceedings.