factual

Does the Kitchen Solvers agreement allow for recovery of interest on attorneys' fees and costs?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

The prevailing party in any legal proceeding before a court, arbitrator or other tribunal will be entitled to recover its reasonable attorneys' fees, costs and interest.

This Subparagraph 16.J will survive termination or expiration of this Agreement under any circumstances.

Source: Item 22 — Contracts (FDD page 49)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, the prevailing party in a legal proceeding is entitled to recover interest on attorneys' fees and costs. Specifically, the franchise agreement states that if there is any legal proceeding before a court, arbitrator, or other tribunal, the prevailing party can recover their reasonable attorneys' fees, costs, and interest. This encourages both Kitchen Solvers and its franchisees to act reasonably and in good faith, as the risk of covering the other party's legal expenses, including interest, can be a significant deterrent to frivolous litigation.

This provision applies to any legal proceeding related to the franchise agreement. This means that if a franchisee sues Kitchen Solvers and wins, Kitchen Solvers would have to cover the franchisee's legal fees, costs, and any accrued interest. Conversely, if Kitchen Solvers wins a lawsuit against a franchisee, the franchisee would be responsible for Kitchen Solvers' legal expenses plus interest. This creates a financial incentive for both parties to avoid unnecessary legal battles and to seek amicable resolutions whenever possible.

It is important to note that this clause survives the termination or expiration of the franchise agreement. Therefore, even after the franchise relationship ends, this provision regarding the recovery of attorneys' fees, costs, and interest remains in effect. This ensures that both Kitchen Solvers and the franchisee are protected and can seek legal recourse if necessary, even after the agreement has concluded. This clause provides an additional layer of protection and recourse for both parties involved in the Kitchen Solvers franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.