What does the 'Costs and Attorneys' Fees' cover for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Costs and | Actual costs, will vary | As incurred | See Note 7. |
| Attorneys’ Fees | under circumstances |
-
- If you are in breach or default of any monetary or non-monetary material obligation under the Franchise Agreement or any related agreement between you and us or our affiliates, and we engage an attorney to enforce our rights (whether or not formal judicial proceedings are initiated), you must pay all reasonable attorneys' fees, court costs and litigation expenses we incur. If you institute any legal action to interpret or enforce the terms of the Franchise Agreement, and your claim in such action is denied or the action is dismissed, we are entitled to recover our reasonable attorneys' fees, and all other reasonable costs and expenses incurred in defending against same, and to have such an amount awarded as part of the judgment in the proceeding.
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees may incur 'Costs and Attorneys’ Fees' under certain circumstances. The actual costs will vary. Specifically, if a Cool Binz franchisee breaches the Franchise Agreement or any related agreement, Cool Binz may engage an attorney to enforce its rights. In such cases, the franchisee must pay all reasonable attorneys' fees, court costs, and litigation expenses incurred by Cool Binz, regardless of whether formal judicial proceedings are initiated.
Furthermore, if a Cool Binz franchisee initiates any legal action to interpret or enforce the terms of the Franchise Agreement, and their claim is denied or the action is dismissed, Cool Binz is entitled to recover its reasonable attorneys' fees and all other reasonable costs and expenses incurred in defending against the action. The franchisee will be responsible for having such an amount awarded as part of the judgment in the proceeding.
This means that a Cool Binz franchisee could face significant legal expenses if they violate the Franchise Agreement or unsuccessfully sue Cool Binz. It is important for prospective franchisees to fully understand their obligations under the Franchise Agreement and to seek legal counsel if they are unsure about any aspect of the agreement. This is a fairly standard clause in franchise agreements, intended to protect the franchisor from legal costs arising from franchisee non-compliance or unsuccessful litigation.