Does the actual cost charged by Endless Summer Sweets include attorney's fees?

According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the actual costs charged to a franchisee may include reasonable attorney's fees. Specifically, Endless Summer Sweets may charge franchisees its actual costs if it incurs costs, including reasonable attorney's fees, while attempting to collect amounts owed by the franchisee. This means that if a franchisee fails to pay what they owe to Endless Summer Sweets, the franchisee may be responsible for covering Endless Summer Sweets's legal expenses in pursuing collection.

This is a fairly standard practice in franchising. Franchise agreements typically outline the financial obligations of the franchisee, and franchisors often reserve the right to recover costs associated with enforcing these obligations. The inclusion of attorney's fees in recoverable costs can be a significant expense for a franchisee who is in default or dispute with Endless Summer Sweets.

Beyond collection efforts, Endless Summer Sweets outlines additional scenarios where franchisees may incur costs. For example, if Endless Summer Sweets cures a franchisee's non-compliance (such as purchasing required insurance), the franchisee will owe Endless Summer Sweets's costs plus a 10% administrative fee. Franchisees are also responsible for indemnifying and defending Endless Summer Sweets against losses from legal actions related to the operation of their franchise, unless the action is caused by Endless Summer Sweets's misconduct or negligence. These provisions highlight the importance of franchisees adhering to the franchise agreement and maintaining open communication with Endless Summer Sweets to avoid potential disputes and associated costs.