What triggers the indemnification obligation to All Dogs Unleashed?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
HISE AGREEMENT**
| Type of Fee1 | Amount | Due Date | Remarks | |
|---|---|---|---|---|
| Enforcement Costs and Attorneys’ Fees | Actual fees incurred | Payable as incurred | Payable only if we incur a loss related to your operation of the Facility. |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 12–16)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, franchisees may be required to indemnify All Dogs Unleashed under certain circumstances. Specifically, the franchisee must reimburse All Dogs Unleashed and pay their attorneys' fees and related costs if All Dogs Unleashed incurs a loss relating to the franchisee's operation of the franchised business. This indemnification is triggered upon demand from All Dogs Unleashed.
In practical terms, this means that if a franchisee's actions or inactions in running their All Dogs Unleashed location lead to a financial loss for the franchisor, the franchisee will be responsible for covering those losses. This could include legal fees, damages, or other costs incurred by All Dogs Unleashed as a result of the franchisee's operation.
It is important for prospective All Dogs Unleashed franchisees to understand the scope of this indemnification clause and to take steps to minimize the risk of triggering it. This may include carefully following All Dogs Unleashed's operating procedures, maintaining adequate insurance coverage, and seeking legal advice when necessary. Franchisees should clarify with All Dogs Unleashed what specific scenarios could trigger this indemnification obligation to avoid unexpected financial burdens.