factual

In a dispute related to the Hydrodog Franchise Agreement, who is responsible for reimbursing litigation or arbitration expenses?

Q: In a dispute related to the Hydrodog Franchise Agreement, who is responsible for reimbursing litigation or arbitration expenses?

- 13. Attorneys' Fees. In any action or dispute, at law or in equity, that may arise under or otherwise relate to this Agreement, the prevailing party will be entitled to full reimbursement of its litigation or arbitration expenses from the other party. Litigation or arbitration expenses include attorneys' fees, costs, arbitration fees, expert witness fees and other related expenses including paralegal fees, travel and lodging expenses and court and arbitration filing costs. Reimbursement is due within 30 days of written notice after determination. Source: Item 23 — RECEIPTS (FDD pages 43–166)

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

Attorneys' Fees. In any action or dispute, at law or in equity, that may arise under or otherwise relate to this Agreement, the prevailing party will be entitled to full reimbursement of its litigation or arbitration expenses from the other party.

Litigation or arbitration expenses include attorneys' fees, costs, arbitration fees, expert witness fees and other related expenses including paralegal fees, travel and lodging expenses and court and arbitration filing costs.

Reimbursement is due within 30 days of written notice after determination.

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to the 2025 Hydrodog Franchise Disclosure Document, in any action or dispute related to the Franchise Agreement, the prevailing party is entitled to full reimbursement of its litigation or arbitration expenses from the other party. These expenses include attorneys' fees, costs, arbitration fees, expert witness fees, and other related expenses such as paralegal fees, travel and lodging expenses, and court and arbitration filing costs.

This means that if a Hydrodog franchisee wins a legal dispute against Hydrodog (or vice versa), the losing party must cover the legal costs of the winning party. This could include a wide range of expenses, potentially amounting to a significant sum depending on the complexity and length of the legal proceedings.

The reimbursement is due within 30 days of written notice after the determination of which party prevailed. This provision encourages both Hydrodog and its franchisees to act reasonably and in good faith during any legal disputes, as the risk of having to pay the other party's legal fees could be a significant deterrent to pursuing frivolous claims or defenses. Franchisees should be aware of this clause and factor it into their decision-making process when faced with a potential legal issue related to their Hydrodog franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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