Under what circumstances is a Crave franchisee required to reimburse the franchisor for costs and expenses in a judicial or arbitration proceeding?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.8 If we are required to enforce this Agreement in a judicial or arbitration proceeding, you shall reimburse us for our costs and expenses, including, without limitation, reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any such proceeding.
If we are required to engage legal counsel in connection with any failure by you to comply with this Agreement, you shall reimburse us for any of the above-listed costs and expenses incurred by us.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Crave for costs and expenses incurred in a judicial or arbitration proceeding under specific circumstances. If Crave is required to enforce the Franchise Agreement in a judicial or arbitration proceeding, the franchisee will have to cover Crave's costs and expenses. These costs include reasonable accountants', attorneys', attorney assistants', and expert witness fees.
Additionally, the franchisee is responsible for costs of investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses. These expenses can be incurred before, during the preparation for, or in anticipation of filing any such proceeding.
Furthermore, if Crave needs to engage legal counsel because the franchisee failed to comply with the Franchise Agreement, the franchisee must reimburse Crave for all the listed costs and expenses. This provision ensures that Crave can recover expenses associated with enforcing the agreement and addressing franchisee non-compliance through legal means.