What costs and expenses will Buns On Fire reimburse the franchisee for under this indemnification agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor agrees to indemnify Franchisee against, and to reimburse Franchisee for, all direct damages, excluding consequential, punitive, or special damages, for which Franchisee is held liable in any proceeding in which Franchisee's use of any Mark pursuant to and in compliance with this Agreement is held to constitute trademark infringement, unfair competition or dilution, and for all costs reasonably
incurred by Franchisee in the defense of any such claim brought against him or in any such proceedings in which he is named as a party, provided that Franchisee has timely notified the Franchisor of such claim or proceedings, has otherwise complied with this Agreement and has tendered complete control of the defense of such to the Franchisor. If the Franchisor defends such claims, the Franchisor shall have no obligation to indemnify or reimburse Franchisee with respect to any fees or disbursements of any attorney retained by Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire will indemnify the franchisee against direct damages, excluding consequential, punitive, or special damages, for which the franchisee is held liable in a proceeding where the franchisee's use of any mark, in compliance with the agreement, is held to constitute trademark infringement, unfair competition, or dilution.
Buns On Fire will also reimburse the franchisee for all costs reasonably incurred in the defense of any such claim brought against them or in any such proceedings in which they are named as a party. However, this is provided that the franchisee has timely notified Buns On Fire of such claim or proceedings, has otherwise complied with the Franchise Agreement, and has tendered complete control of the defense to Buns On Fire.
If Buns On Fire defends such claims, they have no obligation to indemnify or reimburse the franchisee with respect to any fees or disbursements of any attorney retained by the franchisee. This means that if a franchisee hires their own attorney against the wishes of Buns On Fire, they will be responsible for those attorney fees.