Under what circumstances will the C12 Group indemnify a franchisee for trademark infringement?

According to the 2025 C12 Group Franchise Disclosure Document, C12 Group will indemnify, defend, and hold a franchisee harmless 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 C12 Group will protect the franchisee from any legal claims or financial losses resulting from such infringement, provided the franchisee is using the trademarks as authorized.

This protection is a significant benefit for franchisees, as it shields them from potential legal liabilities associated with trademark usage. However, it's crucial for franchisees to adhere strictly to C12 Group's guidelines and instructions regarding trademark usage, as the indemnification is contingent upon compliance with the franchise agreement. Failure to follow these guidelines could void the protection offered by C12 Group.

It is also important to note that the franchisee has a responsibility to notify C12 Group immediately if they become aware of any potential infringement or challenges to their use of C12 Group's trademarks. This proactive communication is essential for C12 Group to take appropriate action and protect both its own interests and those of the franchisee. This clause ensures that C12 Group remains proactive in protecting its brand and supporting its franchisees in trademark-related matters.