Is Spray Net entitled to recover legal fees from the franchisee for enforcing the Guaranty?

According to Spray Net's 2025 Franchise Disclosure Document, Spray Net is entitled to recover legal fees from the franchisee for enforcing the terms of the Guaranty. Specifically, if Spray Net incurs any legal fees or other costs associated with enforcing the terms of the Guaranty or the Franchise Agreement against the franchisee, Spray Net will be entitled to recover all costs and expenses, including reasonable attorneys' fees. This applies whether or not formal legal proceedings are initiated.

This provision means that if a Spray Net franchisee breaches the Franchise Agreement and Spray Net has to take legal action to enforce the agreement or the Guaranty, the franchisee may be responsible for covering Spray Net's legal costs in addition to any other damages or remedies awarded to Spray Net. The Guaranty is a personal guarantee, signed by the owners/principals of the franchisee, as well as their spouses, making them personally liable for the franchisee's obligations.

It is important for prospective Spray Net franchisees to understand the full scope of their financial obligations, including the potential for covering Spray Net's legal fees in case of a breach. Franchisees should carefully review the terms of the Franchise Agreement and the Guaranty with a legal professional to fully understand their rights and responsibilities. This clause is fairly standard in franchise agreements, as it aims to protect the franchisor from incurring losses due to legal action necessitated by the franchisee's non-compliance.