Does Afuri Ramen Dumpling guarantee to defend or indemnify franchisees in proceedings involving the Marks?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Indemnification. Franchisee shall indemnify, defend and hold harmless Franchisor and its affiliates against all losses, costs, proceedings, judgments, liabilities, expenses, court costs, and reasonable fees of attorneys and other professionals arising out of or related to: (1) any breach of the representations and warranties set out in this Addendum; (2) the operation of any Pre-Existing Business; or (3) any willful or negligent act or omission of Franchisee or Franchisee's owners, directors, officers, employees or agents (or those of any Pre-Existing Business). This indemnity includes but is not limited to any act or omission that contributes to any economic damage, bodily injury, sickness, disease or death. This indemnity shall survive termination of the Franchise Agreement. This indemnity is intended to be in addition to, and does not reduce the scope of, the indemnification provisions in the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
The 2024 Afuri Ramen Dumpling Franchise Disclosure Document does not explicitly state that Afuri Franchise, Inc. will defend or indemnify franchisees in proceedings involving the Marks (i.e., trademarks, service marks, logos, etc.). However, the document does state that the franchisee shall indemnify, defend, and hold harmless the franchisor and its affiliates against all losses, costs, proceedings, judgments, liabilities, expenses, court costs, and reasonable fees of attorneys and other professionals arising out of or related to any willful or negligent act or omission of the franchisee. This obligation of the franchisee survives the termination of the Franchise Agreement.
This means that as an Afuri Ramen Dumpling franchisee, you are responsible for covering the franchisor's losses, costs, and legal fees if these arise from your actions or omissions. This could include situations where your operation infringes on intellectual property rights through negligence or intentional actions.
It is important to note that the FDD does not provide details on whether Afuri Franchise, Inc. offers any protection to franchisees in case of claims against them related to the use of the Afuri Marks. A prospective franchisee should seek clarification from the franchisor regarding their responsibilities and potential liabilities related to intellectual property and trademark usage, as well as whether the franchisor provides any form of defense or indemnification in such cases.