Does Canine Dimensions Franchising, LLC's election to control the defense of an action diminish the Franchisee's obligation to indemnify?

According to Canine Dimensions's 2025 Franchise Disclosure Document, the franchisee's obligation to indemnify the franchisor is not diminished even if Canine Dimensions elects to control the defense of an action. The franchisee is required to provide immediate notice to Canine Dimensions Franchising, LLC of any action subject to indemnification. Canine Dimensions may choose to control the defense or settlement of such actions.

Regardless of whether Canine Dimensions undertakes any action or defense, the franchisee is still responsible for all losses and expenses incurred. These expenses are to be paid by the franchisee.

This means that even if Canine Dimensions decides to take over the legal defense of a claim, the franchisee remains financially responsible for any associated costs, damages, or settlements. This could include attorney's fees, court costs, and any judgments or fines resulting from the action. This clause ensures that Canine Dimensions can protect its brand and reputation without bearing the financial burden of the franchisee's actions or omissions that lead to the claim.