Who bears the legal fees and expenses in a Marble Slab Creamery franchise arbitration?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.6 Franchisee will promptly pay all sums owing to Franchisor and its Affiliates.
In the event of termination for any default of Franchisee, such sums will include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default.
- 14.7 Franchisee will pay to Franchisor all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of this Agreement in obtaining injunctive or other relief for the enforcement of any provisions of this Section 14.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
Based on the 2025 Marble Slab Creamery Franchise Disclosure Document, franchisees may be responsible for certain legal fees and expenses incurred by the franchisor. Specifically, if a Marble Slab Creamery franchisee defaults on the franchise agreement, they may have to cover all damages, costs, and expenses, including reasonable attorneys' fees, that the franchisor incurs as a result of the default.
Additionally, a Marble Slab Creamery franchisee may be responsible for paying all damages, costs, and expenses, including reasonable attorneys' fees, that the franchisor incurs after the termination or expiration of the agreement if the franchisor needs to obtain injunctive or other relief to enforce any provisions related to the franchisee's obligations upon termination.
These clauses in the Marble Slab Creamery franchise agreement highlight the importance of franchisees fulfilling their contractual obligations and adhering to post-termination requirements to avoid potential financial liabilities for the franchisor's legal costs. Prospective franchisees should carefully review the franchise agreement and seek legal counsel to fully understand their responsibilities and potential financial risks related to legal fees and expenses.