Under what conditions is Bonchon entitled to recover attorneys' fees from the licensee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
hich has jurisdiction. Licensee, on behalf of Licensee and Licensee's affiliates, and the owners, members, officers, directors or managers of each of the foregoing, hereby waive and covenant never to assert or claim that the venue designated for litigation by this Agreement is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including any claim under the judicial doctrine of "forum non conveniens"). The parties agree that this Section 16.02 shall not be construed as preventing either party from removing an action or proceeding from state to federal court.
17. COSTS OF ENFORCEMENT; ATTORNEYS' FEES
17.01 Costs of Enforcement
Licensor will be entitled to recover from Licensee reasonable attorneys' fees, experts' fees, court costs and all other expenses of litigation, if Licensor prevails in any action instituted against Licensee in order to secure or protect those rights inuring to Licensor under this Agreement, or to enforce the terms of this Agreement.
17.02 Attorneys' Fees
If Licensor becomes a party to any litigation or other proceeding concerning this Agreement by reason of any act or omission of Licensee or Licensee's authorized representatives and not by any act
or omission of Licensor or any act or omission of Licensor's authorized representatives, or if Licensor becomes a party to any litigation or any insolvency proceedings pursuant to the bankruptcy code or any adversary proceeding in conjunction with an insolvency proceeding, Licensee will be liable to Licensor for reasonable attorneys' fees, experts' fees and court costs incurred by Licensor in the litigation or other proceeding regardless of whether the litigation or other proceeding or action proceeds to judgment. In addition, Licensor will be entitled to add all costs of collection, interest, attorneys' fees and experts' fees to its proof of claim in any insolvency proceedings filed by Licensee.
18. SUBMISSION OF AGREEMENT
18.01 Submission of Agreement
The submission of this Agreement does not constitute an offer and this Agreement will become effective only upon execution of this Agreement by both Licensor and Licensee. Licensor's date of execution will be considered the date of execution of this Agreement.
THIS AGREEMENT WILL NOT BE BINDING ON LICENSOR UNLESS AND UNTIL IT HAS BEEN ACCEPTED AND SIGNED BY AN AUTHORIZED OFFICER OF LICENSOR. LICENSEE HEREBY ACCEPTS AND AGREES TO EACH AND ALL OF THE PROVISIONS, COVENANTS AND CONDITIONS THEREOF.
[Signature page follows.]
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Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can recover attorney's fees from the licensee under several specific circumstances.
First, Bonchon is entitled to recover reasonable attorneys' fees, experts' fees, court costs, and all other expenses of litigation if Bonchon prevails in any action instituted against the licensee to secure or protect Bonchon's rights under the agreement or to enforce the terms of the agreement. This means that if Bonchon sues a franchisee for violating the franchise agreement and wins, the franchisee will be responsible for Bonchon's legal costs.
Second, if Bonchon becomes involved in litigation or other proceedings concerning the agreement due to any action or omission of the licensee or the licensee's authorized representatives (and not due to Bonchon's own actions or omissions), the licensee will be liable for Bonchon's reasonable attorneys' fees, experts' fees, and court costs. This applies regardless of whether the litigation proceeds to judgment. Additionally, Bonchon can add all costs of collection, interest, attorneys' fees, and experts' fees to its proof of claim in any insolvency proceedings filed by the licensee.
Third, if Bonchon becomes a party to any action or proceeding commenced against it by a third party arising out of the agreement, any related agreements, the franchised business, or the franchisee's restaurant due to any claimed act, error, or omission of the franchisee parties, the franchisee must reimburse Bonchon for reasonable attorneys' fees, experts' fees, court costs, travel and lodging costs, and all other expenses incurred in such action or proceeding, regardless of whether it proceeds to judgment. Bonchon is also entitled to add all costs of collection, interest, attorneys' fees, and experts' fees to its proof of claim in any insolvency or bankruptcy proceeding the franchisee files.