Under what circumstances will the C12 Group indemnify, defend, and hold harmless a franchisee regarding trademark use?

According to the 2025 C12 Group Franchise Disclosure Document, C12 Group agrees to indemnify, defend, and hold harmless a franchisee if the franchisee's use of C12 Group's trademarks, in accordance with the Franchise Agreement, infringes upon the intellectual property rights of a third party. This means that if a franchisee is sued for trademark infringement due to their authorized use of C12 Group's trademarks, C12 Group will cover the franchisee's legal costs and any resulting damages. The franchisee must notify C12 Group immediately if they become aware of any infringement or challenge to their use of C12 Group's trademarks.

This protection is a significant benefit for franchisees, as it shields them from potentially substantial legal expenses and liabilities associated with trademark disputes. Trademark infringement claims can be costly to defend, even if the franchisee is ultimately found not liable. By providing indemnification and defense, C12 Group assumes the risk associated with the use of its trademarks, giving franchisees peace of mind.

However, it's important to note that this indemnification applies only when the franchisee uses the trademarks in accordance with the Franchise Agreement. Any unauthorized or improper use of the trademarks by the franchisee may void this protection. Additionally, the franchisee has a responsibility to promptly notify C12 Group of any potential infringement claims, as failure to do so could also affect the indemnification. C12 Group also maintains control over any litigation or proceedings that may arise.