What is included in the definition of 'Losses' for indemnification purposes under the 7 Brew franchise agreement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
We agree to reimburse your damages and expenses incurred in any trademark infringement proceeding disputing your authorized use of any Mark under this Agreement, provided your use has been consistent with this Agreement, the Operations Manual, and Brand Standards communicated to you, and you have timely notified us of, and complied with our directions in responding to, the proceeding. At our option, we and/or our affiliate(s) may defend and control the defense of any proceeding arising from or relating to your use of any Mark under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
I am unable to provide a direct answer regarding the specific definition of 'Losses' for indemnification purposes in the 7 Brew franchise agreement. After reviewing the provided excerpts from the 2025 Franchise Disclosure Document, I could not locate a section that explicitly defines what 'Losses' encompasses within the context of indemnification.
However, the FDD excerpts do cover indemnification in the context of trademark infringement. Specifically, 7 Brew agrees to reimburse a franchisee's damages and expenses if they incur costs from a trademark infringement proceeding, provided the franchisee used the mark as authorized and followed 7 Brew's directions. This suggests that indemnification is addressed in the agreement, but the exact scope of 'Losses' is not detailed in the provided excerpts.
A prospective 7 Brew franchisee should carefully review the full franchise agreement and consult with a legal professional to fully understand the scope of indemnification and the definition of 'Losses.' It would be prudent to ask 7 Brew for clarification on what specific costs, damages, and expenses are covered under the indemnification clause to fully understand the financial protections and obligations within the franchise agreement.