What is included in Cinch I.T.'s enforcement costs that the guarantor must reimburse?

According to Cinch I.T.'s 2024 Franchise Disclosure Document, if Cinch I.T. is required to enforce the Guaranty Agreement in any judicial or arbitration proceeding or on any appeals, the guarantor must reimburse Cinch I.T. for its enforcement costs. These costs are broad and cover expenses related to legal and expert assistance.

The enforcement costs that the guarantor must reimburse include reasonable accountants', attorneys', attorneys' assistants', arbitrators', and expert witness fees. It also covers costs of investigation and proof of facts, which could involve hiring private investigators or gathering evidence. Court costs, filing fees, and other litigation expenses are also included, suggesting that any expense incurred during legal proceedings will be the responsibility of the guarantor.

Furthermore, the guarantor is responsible for travel and living expenses, regardless of whether these expenses were incurred prior to, in preparation for, or in contemplation of filing any written demand, claim, action, hearing, or proceeding to enforce the Guaranty Agreement. This means that even preliminary costs incurred before a formal legal process begins are the guarantor's responsibility. This comprehensive list of enforcement costs highlights the significant financial risk a guarantor undertakes when signing the Guaranty Agreement with Cinch I.T.