What specific costs are included in Hydrodog's enforcement costs that a guarantor may be responsible for?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Enforcement Costs. If we are required to enforce this Guaranty in any judicial or arbitration proceeding or any appeals, or if we engage legal counsel in anticipation of enforcement, you must reimburse us for our enforcement costs. Enforcement costs include reasonable accountants', attorneys', attorney's assistants', arbitrators' and expert witness fees, costs of investigation and proof of facts, court costs, arbitration filing fees, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for, or in contemplation of the filing of any written demand, claim, action, hearing or proceeding to enforce this Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a guarantor may be responsible for enforcement costs if Hydrodog is required to enforce the Guaranty in any judicial or arbitration proceeding, including appeals, or if Hydrodog engages legal counsel in anticipation of enforcement. These costs are reimbursable by the guarantor.
The specific enforcement costs that the guarantor may be responsible for include reasonable fees for accountants, attorneys, attorney's assistants, arbitrators, and expert witnesses. The guarantor is also responsible for costs of investigation and proof of facts, court costs, arbitration filing fees, other litigation expenses, and travel and living expenses.
These enforcement costs can be incurred prior to, in preparation for, or in contemplation of the filing of any written demand, claim, action, hearing, or proceeding to enforce the Guaranty. This means that even preliminary legal work can be charged to the guarantor, which could potentially lead to significant financial exposure depending on the complexity and duration of any legal dispute.