What triggers the obligation to pay indemnification to All Dogs Unleashed?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | |
| Indemnification | Amount of loss suffered | Upon demand | You must reimburse us and pay our attorneys’ fees and related costs if we incur a loss relating to your operation of the Franchised Business. |
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 for losses incurred relating to the operation of the franchised business. This means that if All Dogs Unleashed suffers a loss connected to how the franchisee runs their All Dogs Unleashed location, the franchisee will have to cover the amount of the loss. This payment is due upon demand from All Dogs Unleashed.
This indemnification extends beyond just the loss amount itself. The franchisee is also responsible for reimbursing All Dogs Unleashed for attorneys' fees and any related costs that All Dogs Unleashed incurs because of the franchisee's operation of the business.
This is a fairly standard clause in franchise agreements. It is designed to protect the franchisor from liabilities caused by the actions of its franchisees. Prospective All Dogs Unleashed franchisees should carefully consider this obligation and ensure they operate their business in a way that minimizes the risk of causing losses to All Dogs Unleashed, as those losses could become the franchisee's financial responsibility.