Does the definition of 'Losses and Expenses' for Canine Dimensions include indirect costs?

According to Canine Dimensions' 2025 Franchise Disclosure Document, the definition of 'Losses and Expenses' includes both direct and indirect costs. Specifically, this definition applies to the indemnification obligations of the franchisee to Canine Dimensions.

The FDD states that 'Losses and Expenses' encompasses all direct and indirect costs, damages, liabilities, and expenses. These include, but are not limited to, reasonable attorneys' fees, court costs, settlement amounts, judgments, fines, penalties, and other litigation expenses. These costs are those incurred by the indemnified parties (which include Canine Dimensions) as a result of any claim, demand, action, suit, or proceeding related to the operation of the franchised business, the franchisee's conduct, or any breach of the Franchise Agreement.

This means that a Canine Dimensions franchisee could be responsible for a wide range of costs beyond just the immediate, direct expenses resulting from a claim or action. Indirect costs, which can be less obvious but still substantial, are also included in the franchisee's potential financial responsibility under the indemnification clause. Franchisees should be aware of this broad definition and understand the potential financial implications of their actions and the operation of their Canine Dimensions business.