If Buns On Fire performs my obligations, must I reimburse them?
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 cl
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire FDD, under certain circumstances, a franchisee may be entitled to indemnification from Buns On Fire. Specifically, Buns On Fire agrees to indemnify the franchisee against direct damages, excluding consequential, punitive, or special damages, for which the franchisee is held liable in any proceeding where the franchisee's use of any mark, pursuant to and in compliance with the Franchise Agreement, is held to constitute trademark infringement, unfair competition, or dilution.
This indemnification also extends to all costs reasonably incurred by the franchisee 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 conditional upon the franchisee providing timely notification to Buns On Fire of such claims.
This means that if a Buns On Fire franchisee is sued for trademark infringement related to their use of the Buns On Fire marks, and they have followed the agreement, Buns On Fire will cover the direct damages and reasonable defense costs. However, the franchisee must promptly inform Buns On Fire of the claim to be eligible for this protection.