Under what circumstances must a Deka Lash franchisee reimburse legal fees to the franchisor?

According to the 2024 Deka Lash Franchise Disclosure Document, a franchisee must reimburse Deka Lash for legal fees and expenses reasonably incurred under specific circumstances. These circumstances include instances where Deka Lash enforces the terms of the Franchise Agreement or any obligation owed to them or their affiliates, regardless of whether Deka Lash initiates legal proceedings, unless Deka Lash initiates and fails to substantially prevail in such proceedings.

Additionally, a Deka Lash franchisee is responsible for reimbursing legal fees if they assert a claim against Deka Lash and Deka Lash substantially prevails in court or other formal legal proceedings. This means that if a franchisee sues Deka Lash and Deka Lash wins the case, the franchisee will have to cover Deka Lash's legal costs.

Furthermore, the franchisee is liable for Deka Lash's legal fees and costs related to any disputes that arise between the franchisee and any client, vendor, or other third-party affiliate of the franchisee. This condition highlights the importance of resolving disputes amicably and the potential financial burden if legal intervention becomes necessary. These stipulations are typical in franchise agreements to protect the franchisor's interests and ensure compliance with the agreement's terms.