Must I indemnify All Dogs Unleashed against claims arising from my employment practices?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Damage Waiver. Each of the parties EXPRESSLY WAIVE(S) ANY CLAIM FOR PUNITIVE, MULTIPLE AND/OR EXEMPLARY DAMAGES; except that this waiver and limitation does not apply with respect to (a) your obligation to indemnify us under any provision of this Agreement, or (b) any claims we bring against you and/or your guarantors and/or your owners for unauthorized use of the Marks, unauthorized use or disclosure of any Confidential Information, unfair competition, breach of your confidentiality or non-competition covenants under this Agreement, and/or any cause of action under the Lanham Act, and we are entitled to receive an award of multiple damages, attorneys' fees and all damages as provided by law.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, franchisees may be obligated to indemnify All Dogs Unleashed under certain provisions of the franchise agreement. Specifically, the agreement stipulates that the waiver of punitive, multiple, or exemplary damages does not apply to the franchisee's obligation to indemnify All Dogs Unleashed. This means that while franchisees generally waive the right to claim punitive damages against All Dogs Unleashed, this waiver is voided if the franchisee is obligated to indemnify All Dogs Unleashed under the agreement.
In practical terms, this clause means that if a claim arises against All Dogs Unleashed for which the franchisee is contractually obligated to provide indemnification, the franchisee cannot seek to limit their liability by claiming a waiver of punitive damages. This could significantly increase the financial exposure of the franchisee in the event of such a claim. The FDD does not specify the types of claims for which a franchisee would be required to indemnify All Dogs Unleashed, but it is common in franchising for indemnification obligations to extend to claims arising from the franchisee's operation of the business, including employment practices.
It is important for prospective All Dogs Unleashed franchisees to carefully review the specific indemnification provisions within the franchise agreement to fully understand the scope of their potential liability. Franchisees should seek legal counsel to assess the risks associated with these provisions and to ensure they have adequate insurance coverage to protect themselves against potential claims. Understanding the circumstances under which indemnification is required is crucial for managing the financial risks of operating an All Dogs Unleashed franchise.