When are the Legal Fees and Costs due for a Deka Lash franchise?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Legal Fees and Costs | Actual amount of attorney fees and costs incurred. | When incurred. | You must reimburse our attorney fees and costs for all expenses reasonably incurred (i) to enforce the terms of your Franchise Agreement or any obligation owed to us and our affiliates, whether or not we initiate the legal proceeding, unless we initiate and fail to substantially prevail in such court or formal legal proceeding; (ii) in the defense of any claim Franchisee asserts against us on which we substantially prevail in court or other formal legal proceedings; and (iii) as to any disputes that originate between you and any client, vendor, or other third-party affiliate of yours. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, franchisees are responsible for reimbursing Deka Lash's legal fees and costs. These fees are due 'when incurred.' This means a franchisee can expect to pay these legal costs as they arise, rather than in a single lump sum.
The FDD specifies the circumstances under which these legal fees may be incurred. A Deka Lash franchisee must reimburse legal fees and costs for all expenses reasonably incurred (i) to enforce the terms of your Franchise Agreement or any obligation owed to Deka Lash and its affiliates, whether or not Deka Lash initiates the legal proceeding, unless Deka Lash initiates and fails to substantially prevail in such court or formal legal proceeding; (ii) in the defense of any claim Franchisee asserts against Deka Lash on which Deka Lash substantially prevails in court or other formal legal proceedings; and (iii) as to any disputes that originate between you and any client, vendor, or other third-party affiliate of yours.
In simpler terms, if Deka Lash has to take legal action to enforce the franchise agreement, or if the franchisee sues Deka Lash and loses, the franchisee will have to cover Deka Lash's legal expenses. Also, the franchisee is responsible for legal fees from disputes with clients, vendors or other third parties affiliated with the franchisee. This is a fairly standard clause in franchise agreements, designed to protect the franchisor from legal costs arising from franchisee actions or disputes. Prospective franchisees should factor in the potential for these costs when assessing the financial viability of the Deka Lash franchise.