What triggers the indemnification obligation for an All Dogs Unleashed franchisee, and what does it cover?
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, the franchisee has an indemnification obligation to the franchisor. This obligation is triggered if All Dogs Unleashed incurs a loss relating to the franchisee's operation of the franchised business.
If such a loss occurs, the franchisee must reimburse All Dogs Unleashed for the amount of the loss suffered. This reimbursement is due upon demand from All Dogs Unleashed.
In addition to covering the loss itself, the indemnification also extends to All Dogs Unleashed's attorneys' fees and related costs incurred as a result of the loss. This means the franchisee is responsible for both the direct financial loss to All Dogs Unleashed and the legal expenses associated with it.