In a legal proceeding regarding amounts owed to Buona, who is entitled to reimbursement of costs and expenses?

According to Buona's 2025 Franchise Disclosure Document, in a legal proceeding regarding amounts owed, the prevailing party is entitled to reimbursement of costs and expenses. Specifically, if Buona brings a claim against a franchisee for amounts owed, or if either party is required to enforce the franchise agreement through a judicial proceeding, the party that wins the case will be reimbursed for their costs and expenses. These costs include reasonable accounting and legal fees, expert witness fees, court costs, and other litigation expenses. This applies whether these expenses were incurred before, during, or in anticipation of filing any written demand, claim, action, hearing, or proceeding to enforce the obligations outlined in the franchise agreement.

This provision means that if a franchisee is taken to court by Buona for allegedly unpaid amounts and the franchisee wins, Buona would have to cover the franchisee's legal costs. Conversely, if Buona wins such a case, the franchisee would be responsible for Buona's legal expenses. This creates a financial risk for both parties involved in a dispute, as the costs of litigation can be substantial. It also incentivizes both parties to attempt to resolve disputes amicably before resorting to legal action, as the potential for incurring significant legal fees could be a deterrent.

For a prospective Buona franchisee, this clause highlights the importance of understanding and adhering to the financial obligations outlined in the franchise agreement. It also underscores the need to maintain thorough and accurate records of all payments made to Buona. Furthermore, it would be prudent for a franchisee to seek legal counsel before entering into any dispute with Buona to fully understand the potential financial implications of a legal proceeding.