Who pays the costs and expenses for Crepe De Licious' enforcement of Section 8 covenants?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Developer expressly agrees that the existence of any claims it may have against Franchisor, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by Franchisor of the covenants in this Section 8. Area Developer agrees to pay all costs and expenses (including reasonable attorneys' fees) incurred by Franchisor in connection with the enforcement of this Section 8.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the Area Developer is responsible for covering all costs and expenses, including reasonable attorneys' fees, incurred by Crepe De Licious in connection with enforcing Section 8 of the Area Developer Agreement. Section 8 likely contains covenants related to non-competition, confidentiality, or other obligations of the Area Developer.
This means that if Crepe De Licious has to take legal action to enforce these covenants against the Area Developer, the Area Developer will be required to pay for Crepe De Licious's legal expenses, regardless of whether Crepe De Licious wins or loses the case. This could include expenses such as attorney fees, court costs, and other related expenses.
This clause places a significant financial risk on the Area Developer. It is crucial for prospective Area Developers to fully understand the obligations outlined in Section 8 and to ensure they can comply with them to avoid potential legal action and the associated costs. It is also advisable to consult with an attorney to fully understand the implications of this clause before signing the Area Developer Agreement.