What is the deadline for a Floors To Go franchisee to notify Floors To Go in writing of a Covered Litigation?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. In the event we incur reasonable costs and expenses, including, without limitation, paralegal or attorneys' fees, in connection with your failure to comply with any term, condition or obligation under this Agreement, you shall promptly reimburse and pay us for such costs and expenses within ten (10) days of request for same.
- b. The prevailing party in any litigation, arbitration or other dispute resolution proceeding shall be entitled to recover from the other party: (a) all of its reasonable costs and expenses, including, without limitation, paralegal and attorneys' fees, incurred prior to the commencement of such litigation, arbitration or other dispute resolution proceeding in connection with any failure of the other party to comply with any term, condition or obligation under this Agreement; and (ii) all of its reasonable costs and expenses, including, without limitation, any court fees or costs, any arbitration fees or costs (including any payable to the American Arbitration Association), research fees and costs (including any incurred with online research providers, such as Westlaw), investigation fees and costs, discovery costs, court reporter and transcription fees and costs, compensation payable to the arbitrators, and paralegal and attorneys' fees, whether incurred in connection with such litigation, arbitration or other dispute resolution proceeding, or in connection with any appellate, enforcement, collection or bankruptcy proceedings.
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to the 2025 Floors To Go Franchise Disclosure Document, if a franchisee fails to comply with any term, condition, or obligation under the agreement, and Floors To Go incurs costs and expenses as a result, the franchisee must reimburse Floors To Go for these costs within ten days of the request for payment. This includes paralegal or attorneys' fees.
Additionally, in any litigation, arbitration, or other dispute resolution, the prevailing party is entitled to recover reasonable costs and expenses from the other party. This encompasses costs incurred before the commencement of proceedings due to a failure to comply with the agreement. It also includes court fees, arbitration costs, research fees, investigation fees, discovery costs, court reporter fees, compensation for arbitrators, and paralegal and attorneys' fees related to litigation, arbitration, appellate, enforcement, collection, or bankruptcy proceedings.
This means a Floors To Go franchisee needs to act quickly to resolve any issues and comply with the franchise agreement to avoid incurring additional costs. If a dispute arises, understanding the potential for cost recovery by the prevailing party is crucial for making informed decisions about how to proceed with the resolution process.