Under what condition would a Byrider franchisee be required to pay attorneys' fees?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Attorneys' Fees | Actual Costs | As incurred | If you or Byrider Franchising Partners files a suit to enforce a provision of the Franchise Agreement, the losing party pays the prevailing party's reasonable attorneys' fees. |
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee may be required to pay attorneys' fees under specific circumstances related to legal actions. If either Byrider or the franchisee initiates a lawsuit to enforce any provision within the Franchise Agreement, the party that does not prevail in the suit is responsible for covering the prevailing party's reasonable attorneys' fees. This means that if a Byrider franchisee loses a lawsuit against Byrider regarding the Franchise Agreement, the franchisee will have to pay Byrider's legal costs. This allocation of legal costs is a fairly standard practice in franchising agreements.
This condition creates a financial risk for franchisees who may consider legal action against Byrider, as they could be responsible for not only their own legal expenses but also Byrider's. It also incentivizes both parties to attempt to resolve disputes outside of court to avoid incurring potentially significant legal fees. Franchisees should carefully consider the strength of their legal position and the potential costs before initiating any legal proceedings against Byrider.
It is important for prospective franchisees to fully understand the implications of this clause and to seek legal counsel to assess their rights and obligations under the Franchise Agreement. Understanding the conditions under which they might be liable for attorneys' fees can help franchisees make informed decisions about dispute resolution and legal strategy.