Under what circumstances are costs and attorney's fees charged to a Burros Fries franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Costs and Attorney’s Fees | Will vary under circumstances. | As Incurred. | Payable as incurred by us in obtaining injunctive relief or the enforcement of any item of the Franchise Agreement. |
Note 4: You must protect, defend, indemnify and hold us harmless against any claims, lawsuits or losses arising out of your operation of the Franchised Business. If you default under the agreement and we engage an attorney for collection or enforcement, you must pay all our damages, legal fees and costs to the extent permitted by law. Indemnification costs are imposed only by us and collected only by us. Indemnification costs may vary based on the claims, lawsuits, and losses that we incur arising out of your operation of the Business (Franchise Agreement Section 18).
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees may incur costs and attorney's fees under specific circumstances. Burros Fries can charge costs and attorney's fees as incurred in obtaining injunctive relief or the enforcement of any item of the Franchise Agreement.
Additionally, if a Burros Fries franchisee defaults under the agreement and Burros Fries engages an attorney for collection or enforcement, the franchisee must pay all damages, legal fees, and costs to the extent permitted by law. This indemnification clause means franchisees are responsible for protecting and defending Burros Fries against any claims, lawsuits, or losses arising out of the operation of the franchised business.
These costs and fees can vary depending on the specific circumstances and legal actions required. It is important for prospective franchisees to understand these potential financial responsibilities and to operate their Burros Fries business in compliance with the Franchise Agreement to minimize the risk of incurring such expenses.