Who is responsible for damages, costs, and expenses incurred by City Wide after termination in connection with obtaining injunctive relief?

According to City Wide's 2025 Franchise Disclosure Document, the franchisee is responsible for paying all damages, costs, and expenses, including reasonable attorneys' fees, that City Wide incurs after the termination or expiration of the franchise agreement. This applies when City Wide seeks injunctive or other relief under the agreement.

This means that if a franchisee breaches the franchise agreement and City Wide has to take legal action to enforce the agreement (such as obtaining an injunction to prevent the franchisee from continuing to use City Wide's trademarks or operating in a manner that violates the agreement), the franchisee will be responsible for covering City Wide's legal costs. These costs can include attorney fees, court costs, and any other expenses City Wide incurs in pursuing the legal action.

This provision is fairly standard in franchise agreements, as it aims to protect the franchisor's interests and ensure that franchisees comply with the terms of the agreement. It also serves as a deterrent to franchisees who might consider breaching the agreement, as they would face the prospect of having to pay City Wide's legal fees in addition to any other damages they might owe. Prospective franchisees should be aware of this clause and factor it into their assessment of the financial risks associated with investing in a City Wide franchise.