Does 360 Painting have the right to retain counsel of its own choosing in connection with an indemnification claim?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Franchisee shall give Franchisor immediate notice of any such action, suit, demand, claim, investigation or proceeding that may give rise to a claim for indemnification by any of the Indemnified Parties.
Franchisor has the right to retain counsel of its own choosing in connection with any such action, suit, demand, claim, investigation or proceeding.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, 360 Painting has the right to retain counsel of its choosing in connection with any action, suit, demand, claim, investigation, or proceeding that may give rise to a claim for indemnification by any of the indemnified parties.
This means that if a situation arises where 360 Painting may need to be protected (indemnified) from a claim, lawsuit, or investigation, 360 Painting has the authority to hire its own legal representation. This is a standard practice in franchising, as it allows the franchisor to control the legal strategy and ensure its interests are protected.
Furthermore, the franchisee is required to give 360 Painting immediate notice of any action, suit, demand, claim, investigation, or proceeding that may lead to a claim for indemnification. This ensures that 360 Painting is promptly informed of any potential legal issues and can take appropriate action to protect its interests.