Under what condition must a Cool Binz franchisee pay attorney's fees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, a franchisee may be required to cover Cool Binz's attorney's fees under specific circumstances related to breaches or legal actions.
A Cool Binz franchisee must pay all reasonable attorneys' fees, court costs, and litigation expenses if they breach any monetary or non-monetary material obligation under the Franchise Agreement or any related agreement, and Cool Binz engages an attorney to enforce its rights. This applies whether or not formal judicial proceedings are initiated.
Additionally, 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, they are responsible for Cool Binz's reasonable attorneys' fees, and all other reasonable costs and expenses incurred in defending against the legal action. The franchisee may have to pay these fees as part of the judgment in the proceeding.