What are the required actions an Anago subfranchisee must take to be eligible for indemnification against damages related to the use of Proprietary Property?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We will indemnify you against and will reimburse you for all damages that you are held liable in any proceeding involving your use of any Proprietary Property in accordance with the Subfranchise Rights Agreement, provided that you: (a) have timely notified us of the claim; (b) have complied with the Subfranchise Rights Agreement; and (c) allow us sole control of the defense and settlement of any claim.
Source: Item 13 — TRADEMARKS (FDD pages 38–41)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago will indemnify a subfranchisee against damages they are held liable for in any proceeding involving the use of Proprietary Property, provided the subfranchisee meets certain conditions. These conditions are outlined in the Subfranchise Rights Agreement.
To be eligible for indemnification, the Anago subfranchisee must first provide timely notification of the claim to Anago. Second, the subfranchisee must have complied with all terms and conditions of the Subfranchise Rights Agreement. Finally, the subfranchisee must allow Anago to have sole control over the defense and settlement of any claim related to the use of Proprietary Property.
In practical terms, this means an Anago subfranchisee must be proactive in reporting any potential infringement or challenges to their right to use Anago's trademarks. They must also ensure they are operating their franchise in full compliance with the Subfranchise Rights Agreement, which includes following Anago's standards, specifications, and operating procedures. By adhering to these requirements, the subfranchisee can be protected from potential financial liabilities arising from legal claims related to the use of Anago's Proprietary Property.