What specific expenses can the prevailing party recover in a legal proceeding related to the Learningrx agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
If either party institutes a legal proceeding in a court of law with valid jurisdiction and prevails entirely or in part in any action at law or in equity against the other party based entirely or in part on the terms of this Agreement, the prevailing party shall be entitled to recover from the losing party, in addition to any judgment, reasonable attorneys' fees, court costs and all of the prevailing party's expenses in connection with any action at law.
This section shall not apply to arbitration as more fully set forth in Section 16 of this Agreement.
The parties agree to each bear their own legal costs and other expenses incurred as part of any arbitration conducted in accordance with this Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, if a party prevails in a legal proceeding against the other, they are entitled to recover specific expenses. The prevailing party can recover reasonable attorneys' fees, court costs, and all of their expenses related to the legal action. This applies to actions at law or in equity that are based on the terms of the Learningrx agreement.
However, this fee recovery provision does not apply to arbitration proceedings. In the case of arbitration, each party is responsible for bearing their own legal costs and expenses. This distinction between legal proceedings in a court of law and arbitration is important for prospective Learningrx franchisees to understand, as it can significantly impact the financial burden of resolving disputes.
It is also important to note that Learningrx includes a clause in their agreement stating that Franchisee Affiliate agrees to pay all expenses (including court costs and reasonable attorneys' fees) incurred by Franchisor and Franchisee in enforcing this Agreement.