How is the 'prevailing party' determined in a dispute related to the Cd One Price Cleaners Sublease?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Attorneys' Fees. In the event of any litigation or other dispute between Sublandlord and Subtenant, whether based on contract, tort or other cause of action or involving bankruptcy or similar proceedings, in any way related to this Sublease or the relationship of the parties hereto, the nonprevailing party shall pay to the prevailing party all reasonable attorneys' fees and costs and expenses of any type, without restriction by statute, court rule or otherwise, incurred by the prevailing party in connection with any action or proceeding (including litigation proceedings, any appeals and the enforcement of any judgment or award), whether or not the dispute is litigated or prosecuted to final judgment.
The "prevailing party" shall be determined based upon an assessment of which party's major arguments or positions taken in the action or proceeding could fairly be said to have prevailed (whether by compromise, settlement, abandonment by other party of its claim or defense, final decision after any appeals, or otherwise) over the other party's major arguments or positions on major disputed issues.
Any fees and cost incurred in enforcing a judgment shall be recoverable separately from any other amount included in the judgment and shall survive and not be merged in the judgment.
Source: Item 23 — Receipts (FDD pages 72–263)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the prevailing party in any litigation or dispute related to the sublease is determined by assessing which party's major arguments or positions are considered to have prevailed. This determination can be based on various outcomes, including compromise, settlement, abandonment of a claim or defense by the other party, or a final decision after all appeals.
This definition is important because the non-prevailing party is responsible for paying all reasonable attorneys' fees, costs, and expenses incurred by the prevailing party. These expenses are not restricted by any statute or court rule and cover all actions or proceedings, including litigation, appeals, and enforcement of judgments. The fees and costs for enforcing a judgment can be recovered separately and will not be merged into the judgment itself.
For a prospective Cd One Price Cleaners franchisee, this means that understanding the strength of their position in any dispute related to the sublease is crucial. If a franchisee enters into a dispute and does not prevail, they could be responsible for covering not only their own legal costs but also those of the opposing party. This could represent a significant financial burden, so it is important to carefully evaluate the merits of any potential legal action and seek legal counsel to assess the likelihood of success.
In practical terms, this clause incentivizes both parties to resolve disputes amicably and avoid litigation whenever possible. It also underscores the importance of maintaining thorough documentation and a strong legal position in all dealings related to the sublease. Franchisees should ensure they understand their rights and obligations under the sublease agreement to minimize the risk of costly legal disputes.