Who pays the costs of enforcing the Bombs Away Guaranty?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor shall pay to Bombs Away Franchising all costs incurred by Bombs Away Franchising (including reasonable attorney fees) in enforcing this Guaranty.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Guarantor is responsible for paying all costs Bombs Away incurs while enforcing the Guaranty. These costs specifically include reasonable attorney fees.
This means that if Bombs Away has to take legal action to enforce the Guaranty agreement, the Guarantor will be responsible for covering Bombs Away's legal expenses. This could include expenses related to filing a lawsuit, court fees, and attorney fees.
This provision is significant because it shifts the financial burden of enforcing the Guaranty to the Guarantor. This could potentially be a substantial expense, especially if the legal proceedings are lengthy or complex. Prospective franchisees should carefully consider this financial responsibility when evaluating the Guaranty agreement.