Regarding the Itan agreement, what costs are recoverable by the prevailing party in a legal action?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise Agreement.
- 7. DISPUTE RESOLUTION. Any dispute between the parties relating to this Agreement shall be brought in accordance with the dispute resolution provisions set forth in the Franchise Agreement, which are incorporated into this Agreement by reference as if fully set forth herein. You acknowledge and agree that your breach of this Agreement constitutes a material event of default under the Franchise Agreement, permitting us to terminate the Franchise Agreement in accordance with its terms.
8. MISCELLANEOUS.
- (a) If either party hires an attorney or files suit against the other party for breach of this Agreement, the losing party must reimburse the prevailing party for its reasonable attorneys' fees and costs.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the costs recoverable by the prevailing party in a legal action depend on the specific agreement in question.
In the general Franchise Agreement, if either party hires an attorney or files suit against the other for breach of the agreement, the losing party must reimburse the prevailing party for its reasonable attorneys' fees and costs. Similarly, in the Brand Protection Agreement, the prevailing party is entitled to recover all of its reasonable costs and attorneys' fees if legal action is necessary to enforce or address a breach of the agreement's terms.
For franchisees in North Dakota, provisions that might require them to pay all costs and expenses including attorney's fees to Itan if Itan prevails in an enforcement action are modified. The modified provision states that the prevailing party in any enforcement action is entitled to recover all costs and expenses including attorney's fees. This modification appears to be in place to comply with North Dakota franchise laws.