Can Deer Solution recover attorney's fees incurred due to a franchisee's breach?

According to Deer Solution's 2025 Franchise Disclosure Document, if Deer Solution hires an attorney or files suit against a franchisee due to a breach of the Franchise Agreement, and Deer Solution prevails in the lawsuit, the franchisee is responsible for paying Deer Solution's reasonable attorney fees and costs. This means that a franchisee could incur significant additional expenses beyond the initial costs and fees if they are found to be in breach of the agreement and Deer Solution wins the legal case.

This provision is fairly standard in franchise agreements, as it aims to protect the franchisor from financial losses incurred while enforcing the agreement. It also serves as a deterrent to franchisees who might consider violating the terms of the agreement, knowing they could be liable for legal costs. The franchisee's responsibility extends only to 'reasonable' attorney fees and costs, which implies that the fees must be justifiable and not excessive.

For a prospective Deer Solution franchisee, this clause highlights the importance of fully understanding and adhering to the Franchise Agreement. Failure to comply with the agreement's terms could lead to costly legal battles and the obligation to cover Deer Solution's legal expenses. It would be prudent for potential franchisees to seek legal counsel to review the agreement and ensure they fully comprehend their obligations and the potential financial risks involved.