In an action to enforce the Floyds 99 agreement, who pays the attorneys' fees?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
In any action at law or in equity to enforce any of the provisions or rights under this Agreement, the unsuccessful party in such litigation, as determined by the court in a final judgment or decree, shall pay the successful party or parties all costs, expenses and reasonable attorneys' fees incurred therein by such party or parties (including without limitation such costs, expenses and fees on any appeals), and if such successful party shall recover judgment in any such action or proceeding, such costs, expenses and attorneys' fees shall be included as part of such judgment.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, in any legal action to enforce the franchise agreement, the unsuccessful party is responsible for covering the legal costs of the successful party. This includes all costs, expenses, and reasonable attorneys' fees incurred during the litigation, including any appeals.
This means that if a Floyds 99 franchisee sues Floyds 99 Franchising, LLC and loses, the franchisee will have to pay Floyds 99's legal fees. Conversely, if Floyds 99 sues a franchisee and loses, Floyds 99 will be responsible for the franchisee's legal fees. This allocation of fees is designed to discourage frivolous lawsuits and ensure that parties comply with the terms of the franchise agreement.
However, the addendum for North Dakota franchisees states that the prevailing party is entitled to recover all costs and expenses, including attorneys' fees. This suggests that in North Dakota, the rule applies regardless of which party initiated the action. Prospective franchisees should consult with a legal professional to understand the full implications of these clauses in their specific state.