Within how many days of written notice must reimbursement of litigation or arbitration expenses be made under the Hydrodog Franchise Agreement?

According to Hydrodog's 2025 Franchise Disclosure Document, the prevailing party in any action or dispute related to the Franchise Agreement is entitled to reimbursement of litigation or arbitration expenses from the other party. These expenses include attorneys' fees, costs, arbitration fees, expert witness fees, paralegal fees, travel and lodging expenses, and court and arbitration filing costs. Reimbursement is due within 30 days of written notice after the determination of the prevailing party.

For a prospective Hydrodog franchisee, this means that if they win a legal dispute against Hydrodog, they are entitled to be reimbursed for their legal expenses. Conversely, if Hydrodog wins a dispute against the franchisee, the franchisee will be responsible for reimbursing Hydrodog's legal expenses. This provision aims to ensure that the financial burden of legal disputes is borne by the losing party.

It is important for franchisees to understand this clause, as legal battles can be costly. Franchisees should factor in the potential for such expenses when assessing the financial risks of investing in a Hydrodog franchise. This clause is fairly standard in franchise agreements, as it aims to protect both the franchisor and franchisee from incurring undue financial strain due to legal disputes.