Are arbitration fees recoverable by Deer Solution from the franchisee in the event of a breach?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) To hold Franchisee and Franchisee's Owners liable for, and recover from each of them, jointly and severally, all payments, fees, monetary obligations, financial obligations, interest, and charges due and owing to Franchisor from Franchisee pursuant to this Agreement, the Ancillary Agreements, and/or any other agreements between Franchisee and Franchisor, including, without limitation, Royalty Fees and Advertising Contributions with each and every payment and obligation to be accelerated and due immediately.
- (3) To hold Franchisee and Franchisee's Owners liable for, and recover from each of them, jointly and severally, lost revenues, profits, and fees including, but not limited to Royalty Fees, Brand Development Fund Fee, Advertising Contributions, and all other fees, revenues and/or expenses that would have been paid to Franchisor, under the terms of this Agreement and throughout the Term of this Agreement, had a breach not occurred and had Franchisor not terminated this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
Based on the 2025 Deer Solution Franchise Disclosure Document, whether arbitration fees are recoverable by Deer Solution from the franchisee in the event of a breach is not explicitly detailed in the provided excerpts. However, Item 23 does discuss various financial obligations and potential liabilities of the franchisee upon termination or breach of the agreement.
Specifically, in the event of a breach, Deer Solution has the right to recover payments, fees, monetary obligations, financial obligations, interest, and charges due from the franchisee, including Royalty Fees and Advertising Contributions. They can also recover lost revenues, profits, and fees, including Royalty Fees, Brand Development Fund Fee, Advertising Contributions, and other fees that would have been paid throughout the term of the agreement had the breach not occurred.
While the FDD excerpts outline the types of monetary damages Deer Solution can pursue, it does not specifically mention arbitration fees as a recoverable expense. A prospective franchisee should clarify with Deer Solution whether arbitration fees are considered part of the recoverable costs in the event of a breach, as this could significantly impact the financial implications of a dispute.