Is the Franchisee required to indemnify Canine Dimensions Franchising, LLC for any encumbrances, liens, assessments, levies, charges, demands for payment, taxes, or other liabilities imposed on Franchisor due to payments under this Agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and each of the owners of any equity interest in Franchisee (the "Owners"), jointly and severally, will indemnify and defend Canine Dimensions Franchising, LLC (the "Indemnified Parties") against all Losses and Expenses arising from the operation or condition of any part of the Franchised Business or its site, the conduct of business, and any acts or omissions of Franchisee or its employees, agents, or contractors, including the collection or use of Customer Information; the infringement or alleged infringement by Franchisee or any Owners of any patent, trademark, copyright, or other proprietary right owned by third parties, unless arising from authorized use of the Marks in compliance with this Agreement; the violation or breach by Franchisee or any Owners of any applicable laws; Franchisee's failure to obtain and maintain required insurance coverage; libel, slander, or defamation of the Indemnified Parties, the System, or any other Franchisee by Franchisee or any Owners; the violation or breach by Franchisee or its Affiliates or Owners of any warranty, representation, agreement, or obligation in this Agreement or other agreements with the Indemnified Parties; acts, errors, or omissions of Franchisee, its Affiliates, Owners, and their respective owners, officers, employees, agents, and representatives in connection with the Franchised Business; any encumbrances, liens, assessments, levies, charges, demands for payment, taxes, or other liabilities imposed on Franchisor due to payments under this Agreement; and any claim that Franchisor and Franchisee are joint employers of Franchisee's employees or personnel.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the franchisee is required to indemnify Canine Dimensions Franchising, LLC. Specifically, the franchisee and the owners of any equity interest in the franchisee must indemnify and defend Canine Dimensions Franchising, LLC against all losses and expenses arising from various aspects of the franchised business. This includes any encumbrances, liens, assessments, levies, charges, demands for payment, taxes, or other liabilities imposed on the franchisor due to payments under the Franchise Agreement.
This indemnification clause means that if Canine Dimensions Franchising, LLC incurs any costs or liabilities due to the franchisee's actions or the operation of the franchised business as outlined in the agreement, the franchisee is responsible for covering those costs. This could include legal fees, settlement amounts, judgments, fines, and penalties. The franchisee is also responsible for providing immediate notice to Canine Dimensions of any action subject to indemnification, and Canine Dimensions has the right to control the defense or settlement of any such action.
For a prospective Canine Dimensions franchisee, this highlights the importance of understanding and complying with all aspects of the Franchise Agreement and operating the business responsibly. Failure to do so could result in significant financial liabilities. The franchisee should also maintain adequate insurance coverage as required by the agreement to protect against potential claims and liabilities. It is important to note that the definition of 'Losses and Expenses' includes all direct and indirect costs, damages, liabilities, and expenses, including reasonable attorneys' fees, court costs, settlement amounts, judgments, fines, penalties, and other litigation expenses.