factual

Who bears the costs associated with legal action against trademark infringers of Learningrx?

Q: Who bears the costs associated with legal action against trademark infringers of Learningrx?

- 11. In any action at law or in equity to enforce any of the provisions or rights under this Agreement, the unsuccessful party in such litigation, as determined by the court in a final judgment or decree, shall pay the successful party or parties all costs, expenses and reasonable attorneys' fees incurred therein by such party or parties (including without limitation such costs, expenses and fees on any appeals), and if such successful party shall recover judgment in any such action or proceeding, such costs, expenses and attorneys' fees shall be included as part of such judgment. Source: Item 23 — RECEIPT (FDD pages 54–209)

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

1. In any action at law or in equity to enforce any of the provisions or rights under this Agreement, the unsuccessful party in such litigation, as determined by the court in a final judgment or decree, shall pay the successful party or parties all costs, expenses and reasonable attorneys' fees incurred therein by such party or parties (including without limitation such costs, expenses and fees on any appeals), and if such successful party shall recover judgment in any such action or proceeding, such costs, expenses and attorneys' fees shall be included as part of such judgment.

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, the agreement outlines the allocation of legal costs in disputes. Specifically, in any legal action to enforce the provisions or rights within the franchise agreement, the unsuccessful party is responsible for covering the legal expenses of the successful party. This includes all costs, expenses, and reasonable attorneys' fees incurred during the litigation, encompassing any appeals. Furthermore, these costs and fees are included as part of the judgment if the successful party recovers a judgment in such action. This clause applies to disputes between Learningrx and its franchisees regarding the franchise agreement.

This means that if a Learningrx franchisee were to breach the franchise agreement and Learningrx takes legal action and wins, the franchisee would have to pay Learningrx's legal costs. Conversely, if the franchisee wins, Learningrx would have to cover the franchisee's legal costs. This creates a financial risk for both parties involved, as the cost of litigation can be substantial.

This type of clause is relatively common in franchise agreements, as it aims to discourage frivolous lawsuits and encourage parties to resolve disputes amicably. However, prospective Learningrx franchisees should carefully consider this clause and understand the potential financial implications before entering into a franchise agreement. It would be prudent to consult with a legal professional to fully understand the scope and implications of this provision.

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.

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