What specific expenses are included in the litigation or arbitration expenses that the prevailing party is entitled to reimbursement for under the Hydrodog Franchise Agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Hydrodog's 2025 Franchise Disclosure Document, in any legal action or dispute related to the Franchise Agreement, the prevailing party is entitled to reimbursement of their litigation or arbitration expenses from the other party. These expenses specifically include attorneys' fees, costs, arbitration fees, expert witness fees, and other related expenses. The 'other related expenses' include paralegal fees, travel and lodging expenses, and court and arbitration filing costs.
This means that if a Hydrodog franchisee wins a dispute against Hydrodog (or vice versa) related to the franchise agreement, the losing party will be responsible for covering a broad range of the winner's legal and arbitration costs. This could include not only the direct costs of lawyers and court fees but also expenses like expert witnesses, travel, and accommodation for legal personnel.
It is important to note that reimbursement is due within 30 days of written notice after the determination of who the prevailing party is. This clause aims to ensure that the prevailing party is promptly compensated for their expenses, reducing the financial burden of litigation or arbitration. Prospective franchisees should consider this clause carefully, as it could represent a significant financial risk or benefit depending on the outcome of any future disputes.