What costs and expenses are included in the reimbursement for the prevailing party in a Hydrodog legal proceeding?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.17 Costs and Attorneys' Fees.
If a claim for amounts owed by you to us or any of our affiliates is asserted in any legal or arbitration proceeding or if either you or we are required to enforce this Agreement in a judicial or arbitration proceeding, the party prevailing in such proceeding will be entitled to reimbursement of all costs and expenses, including, without limitation, reasonable accounting and attorneys' fees, expert witness fees, court costs, and other litigation expenses.
Attorneys' fees will include, without limitation, reasonable legal fees charged by attorneys, paralegal fees, and costs and disbursements, whether incurred prior to, or in preparation for, or contemplation of, the filing of written demand or claim, action, hearing, or proceeding to enforce the obligations of the parties under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a legal or arbitration proceeding is initiated for amounts owed to Hydrodog or its affiliates, or to enforce the franchise agreement, the prevailing party can recover costs and expenses. These recoverable costs include reasonable accounting and attorneys' fees, expert witness fees, court costs, and other litigation expenses.
The attorneys' fees that Hydrodog may recover encompass legal fees charged by attorneys, paralegal fees, and costs and disbursements. These fees can be incurred before, during the preparation for, or in anticipation of filing a written demand or claim, action, hearing, or proceeding to enforce the obligations outlined in the franchise agreement.
This means that if a Hydrodog franchisee is in a dispute with the franchisor and loses, they could be responsible for covering not only their own legal costs but also Hydrodog's. This provision incentivizes franchisees to carefully consider the merits of their case before pursuing legal action and highlights the importance of adhering to the franchise agreement to avoid potential legal disputes and associated costs.