Who is entitled to recover attorneys' fees in a dispute related to the Spray Net Assignment?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Attorneys' Fees, Etc. In any action or dispute, at law or in equity, that may arise under or otherwise relate to this Assignment, the prevailing party will be entitled to recover its attorneys' fees, costs and expenses relating to any trial or appeal (including, without limitation, paralegal fees) or arbitration or bankruptcy proceeding from the non-prevailing party.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, in any legal action or dispute related to the Assignment, the prevailing party is entitled to recover their attorneys' fees, costs, and expenses from the non-prevailing party. This includes fees and expenses related to trials, appeals, arbitration, or bankruptcy proceedings, and specifically mentions paralegal fees.
This provision in the Assignment aims to ensure that the party who wins a dispute is not unduly burdened by legal costs. It creates an incentive for both Spray Net and the franchisee to act reasonably and avoid frivolous litigation, as the risk of paying the other party's legal fees can be substantial.
For a prospective Spray Net franchisee, this clause offers some protection in the event of a dispute with the franchisor over the Assignment. However, it's important to note that this protection only applies to disputes specifically related to the Assignment document itself, and only if the franchisee prevails in the dispute. Franchisees should carefully consider this clause and consult with an attorney to fully understand their rights and obligations under the Assignment.