In an action or dispute related to the assignment, who is responsible for attorneys' fees for Chem Dry?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- Attorneys' Fees, Etc. In any action or dispute, at law or in equity, that may arise under or otherwise relate to this Assignment, the prevailing party will be entitled to recover its attorneys' fees, costs and expenses relating to any trial or appeal (including, without limitation, paralegal fees) or arbitration or bankruptcy proceeding from the non-prevailing party.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, in any legal action or dispute related to the assignment, the prevailing party is entitled to recover their attorneys' fees, costs, and expenses from the non-prevailing party. This includes costs associated with trials, appeals, arbitration, or bankruptcy proceedings. Paralegal fees are also included in the recoverable expenses.
This clause means that if a Chem Dry franchisee is involved in a dispute concerning the assignment and wins the case, they can recover the legal fees and costs they incurred. Conversely, if the franchisee loses, they will be responsible for covering the legal fees and costs of the other party, which could be Chem Dry or another entity involved in the assignment.
This type of clause is fairly standard in franchise agreements. It is designed to discourage frivolous lawsuits and ensure that the party in the right is not penalized by having to pay legal fees. Prospective Chem Dry franchisees should be aware of this provision and factor it into their risk assessment when considering entering into the franchise agreement.