Who is considered the prevailing party in the enforcement of a Crown Gold Exchange franchise agreement?

According to Crown Gold Exchange's 2024 Franchise Disclosure Document, in North Dakota, the prevailing party in any enforcement action related to the franchise agreement is entitled to recover all costs and expenses, including attorney's fees. This amendment to the disclosure document is specific to franchises operating in North Dakota.

This means that if Crown Gold Exchange takes legal action to enforce the franchise agreement and wins, the franchisee will be responsible for covering Crown Gold Exchange's legal costs. Conversely, if the franchisee wins such a case against Crown Gold Exchange, Crown Gold Exchange will be responsible for the franchisee's legal costs.

This arrangement can significantly impact a franchisee's financial risk, as legal battles can be expensive. Franchisees in North Dakota should carefully consider this provision and factor in potential legal costs when evaluating the franchise opportunity. It is also important to note that this specific clause applies only in North Dakota, and franchise agreements in other states may have different stipulations regarding legal costs and the prevailing party.