Who pays attorneys' fees in case of a default on the Floyds 99 agreement?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- **13.
Attorneys' Fees**.
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 the event of 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 were to breach the agreement and Floyds 99 Franchising, LLC, took legal action and won, the franchisee would be responsible for Floyds 99's legal expenses. Conversely, if the franchisee won the case, Floyds 99 would have to pay the franchisee's legal fees. This arrangement aims to discourage frivolous lawsuits and ensure that parties comply with the terms of the agreement.
It is important for a prospective Floyds 99 franchisee to understand this clause, as legal battles can be expensive. Franchisees should ensure they fully understand their obligations under the agreement to minimize the risk of default and potential liability for legal fees. This clause is fairly standard in franchise agreements, as it provides a financial disincentive for breaching the contract and encourages both parties to resolve disputes amicably.