If a Canine Dimensions franchisee is involved in an administrative or judicial proceeding involving a licensed trademark, is Canine Dimensions required to indemnify the franchisee for expenses or damages?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately when you learn about an infringement of or challenge to your use of a Mark. We will take the action we think appropriate and control any litigation or other proceeding arising out of any such infringement or challenge to the Marks. The Franchise Agreement does not require us to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a trademark licensed by us to you, or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 25–26)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, Canine Dimensions is not required to participate in a franchisee's defense or indemnify them for expenses or damages if the franchisee is involved in an administrative or judicial proceeding concerning a trademark licensed to them by Canine Dimensions. This also applies if the proceeding's outcome is unfavorable to the franchisee.
This means that if a Canine Dimensions franchisee faces a legal challenge related to the use of Canine Dimensions's trademarks, the franchisee will likely be responsible for their own legal defense costs and any resulting damages. Canine Dimensions retains control over any litigation arising from infringement or challenges to the marks, but the Franchise Agreement does not mandate their financial support for the franchisee's legal battles.
In the franchise industry, indemnity clauses vary. Some franchisors offer extensive protection, while others, like Canine Dimensions, place the responsibility on the franchisee. Prospective franchisees should carefully consider this aspect, as trademark disputes can be costly. It would be prudent for a potential Canine Dimensions franchisee to discuss this issue with existing franchisees and seek legal counsel to fully understand the implications and potential risks associated with trademark-related legal proceedings.