Who is responsible for City Wide's costs and expenses if City Wide secures an injunction against the franchisee?

According to City Wide's 2025 Franchise Disclosure Document, the franchisee is responsible for City Wide's costs and expenses if City Wide successfully obtains an injunction against the franchisee. This also applies if City Wide enforces any provision of the Franchise Agreement or if City Wide collects amounts due from the franchisee through an attorney or collection agency.

Specifically, the franchisee is liable to City Wide for all costs and expenses of enforcement and collection. These costs include, but are not limited to, court costs, reasonable attorneys' fees, and reasonable accountants' fees. This means that if a franchisee violates the franchise agreement in a way that leads City Wide to seek legal remedies such as an injunction, the franchisee will bear the financial burden of City Wide's legal efforts.

This provision is fairly standard in franchising, as it aims to protect the franchisor's interests and ensure compliance with the franchise agreement. It also serves as a deterrent for franchisees who may consider breaching the agreement, as they would face the prospect of covering potentially significant legal costs. Prospective franchisees should carefully consider this clause and understand the potential financial implications of non-compliance with the franchise agreement.