If the Ivybrook Academy franchisee defaults, what costs and fees is the guarantor responsible for?
Ivybrook_Academy Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of termination for any default of Franchisee, such sums shall include, but not be limited to (i) all damages, costs and expenses, including reasonable attorneys' fees, Franchisor or any Affiliate incurs as a result of any defaults and termination, including with respect to litigation, arbitration, appellate or bankruptcy proceeding, (ii) all past due fees, such as Royalty Fees and Brand Fund Fees, and (iii) any other amounts due to Franchisor or any Affiliate.
Within 15 days of the date of expiration, nonrenewal, or termination, Franchisee shall pay in full all of the creditors and suppliers to the Franchised Business.
- 17.1.1.6 upon demand pay to Franchisor all costs and expenses, including reasonable attorneys' fees, incurred by Franchisor and its Affiliates subsequent to the termination,
nonrenewal, or expiration of the Franchise, including those incurred in obtaining injunctive or other relief for the enforcement of any provisions of this Agreement;
Source: Item 23 — Receipts. (FDD pages 54–207)
What This Means (2025 FDD)
According to the 2025 FDD, if an Ivybrook Academy franchisee defaults, the franchisee is responsible for specific costs and fees. Within 15 days of termination, the franchisee must pay all sums owed to Ivybrook Academy and its affiliates. These sums include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Ivybrook Academy or its affiliates due to the defaults and termination, including costs related to litigation, arbitration, appellate, or bankruptcy proceedings. The franchisee is also responsible for all past-due fees, such as Royalty Fees and Brand Fund Fees, and any other amounts owed to Ivybrook Academy or its affiliates.
Additionally, the franchisee must pay all of the creditors and suppliers to the franchised business within 15 days of termination. The franchisee is also responsible for all costs and expenses, including reasonable attorneys' fees, incurred by Ivybrook Academy and its affiliates after the termination of the franchise. These costs can arise from obtaining injunctive or other relief to enforce any provisions of the Franchise Agreement.
These financial obligations underscore the importance of fulfilling the terms of the franchise agreement to avoid default. Prospective Ivybrook Academy franchisees should carefully review the default and termination clauses in the agreement and ensure they have sufficient financial resources to cover these potential costs.