In a dispute related to the Hydrodog Assignment, who is responsible for paying attorney's fees?

According to Hydrodog's 2025 Franchise Disclosure Document, in any legal action or dispute related to the Assignment or its enforcement, the prevailing party is entitled to reimbursement of their attorneys' fees, costs, and expenses from the non-prevailing party. This applies to actions at law or in equity. The term "attorneys' fees" is defined broadly to include all charges levied by an attorney for their services, including time charges, paralegal fees, legal assistant fees, and fees earned in settlement, trial, appeal, bankruptcy, or arbitration proceedings.

This means that if a Hydrodog franchisee is involved in a dispute concerning the Assignment (likely referring to the assignment of a contract or agreement) and wins the case, Hydrodog must cover the franchisee's legal costs. Conversely, if the franchisee loses, they are responsible for Hydrodog's legal expenses. This arrangement aims to protect the prevailing party by ensuring they are not financially burdened by legal costs incurred while defending their rights or enforcing the Assignment.

This type of clause is relatively standard in franchise agreements. It's important for a prospective Hydrodog franchisee to understand that the risk of incurring legal fees is tied to the outcome of any dispute. Therefore, franchisees should carefully consider the merits of their position before initiating or defending against any legal action related to the Assignment.