In a judicial proceeding related to a Chicken Guy franchise, who determines the amount of costs and expenses to be reimbursed?

According to Chicken Guy's 2025 Franchise Disclosure Document, in a judicial proceeding, the court, not a jury, will determine the amount of costs and expenses to be reimbursed. This applies when either party, Chicken Guy or the franchisee, brings an action to enforce the franchise agreement. The prevailing party is entitled to reimbursement of costs and expenses. These costs can include reasonable accountants', attorneys', attorneys' assistants' and expert witness fees, the cost of investigation and proof of facts, arbitration or court costs, other arbitration or litigation expenses, and travel and living expenses. These expenses can be incurred whether during, prior to, in preparation for, or in contemplation of the filing of the proceeding.

This means that if a franchisee wins a lawsuit against Chicken Guy, the court will decide how much Chicken Guy must pay to cover the franchisee's legal and related costs. Conversely, if Chicken Guy wins against the franchisee, the court will determine the reimbursement amount the franchisee owes Chicken Guy. This determination by the court provides a level of objectivity, as it removes the decision from either party's direct control.

It is important for prospective franchisees to understand that the right to reimbursement is tied to prevailing in the legal action. Furthermore, the types of costs and expenses that can be reimbursed are broad, covering a wide range of potential expenses associated with litigation or arbitration. This clause aims to make the prevailing party whole by covering the financial burdens incurred during the legal process, as determined by the court.