What costs and expenses can the prevailing party recover in a dispute related to the Chem Dry assignment?

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. This includes costs associated with any trial or appeal, paralegal fees, and expenses related to arbitration or bankruptcy proceedings. This provision applies whether the action is at law or in equity.

For a prospective Chem Dry franchisee, this means that if a dispute arises concerning the assignment and the franchisee wins the case, they can recover the legal costs incurred. Conversely, if Chem Dry prevails, the franchisee would be responsible for Chem Dry's legal expenses. This allocation of fees can significantly impact the financial outcome of any legal dispute.

It is important for franchisees to understand this clause, as legal battles can be expensive. Knowing that the losing party may have to cover the prevailing party's legal costs can influence decisions about pursuing or defending against legal action. Franchisees should factor this potential liability into their risk assessment when considering the assignment of their franchise agreement.