Is Canine Dimensions liable for damages arising from the operation of the franchised business?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
18.3 Indemnification
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.
- 18.3.4 The Indemnified Parties do not assume liability for acts, errors, or omissions of those with whom Franchisee, its Affiliates, or Principals may contract. Franchisee and Principals will hold harmless and indemnify the Indemnified Parties from all Losses and Expenses arising from acts, errors, or omissions of Franchisee, its Affiliates, Principals, and third parties, including in the operation of motor vehicles,
security implementation, use of internet sites or intranet networks, and claims arising from this Agreement.
- 18.3.5 "Losses and Expenses" means all direct and indirect costs, damages, liabilities, and expenses, including but not limited to, reasonable attorneys' fees, court costs, settlement amounts, judgments, fines, penalties, and other litigation expenses, incurred by the Indemnified Parties as a result of or in connection with any claim, demand, action, suit, or proceeding arising out of or relating to the operation of the Franchised Business, the conduct of Franchisee or its employees, agents, or contractors, or any breach of this Agreement by Franchisee or its Affiliates or Owners.
12. INSURANCE
12.1 Requirement
Franchisee must procure, no later than fifteen (15) days prior to the commencement of operations of the Franchised Business, and shall maintain in full force and effect at all times during the Term, at Franchisee's expense, an insurance policy or policies protecting Franchisee and Franchisor, and their respective officers, directors, shareholders, partners, and employees, against any demand or claim with respect to personal injury, death, or property damage, or any loss, liability, or expense whatsoever arising or occurring upon or in connection with the Franchised Business. The insurance policy(ies) must contain an endorsement to Franchisee's policy naming Franchisor and its officers, directors, shareholders, partners and employees shall be named as "additional named insureds" and not "additional insureds" in the broadest form, extending to Franchisor's negligence and errors and omissions, and cannot be limited to vicarious liability. The insurance afforded to additional insureds must apply as primary insurance and not contribute to any insurance or self-insurance available to Canine Dimensions Franchising, LLC.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, franchisees are generally required to indemnify Canine Dimensions against losses and expenses arising from the operation of the franchised business. This means that the franchisee is responsible for covering Canine Dimensions' costs if a claim, demand, action, suit, or proceeding arises due to the franchisee's operation, conduct, or any breach of the franchise agreement. This includes all direct and indirect costs, damages, liabilities, and expenses, such as attorney's fees, court costs, settlement amounts, judgments, fines, penalties, and other litigation expenses.
Specifically, the franchisee must indemnify Canine Dimensions against losses arising from the operation or condition of the franchised business site, the conduct of business, and any acts or omissions of the franchisee or their employees, agents, or contractors. This extends to issues like infringement of proprietary rights, violations of laws, failure to maintain insurance, defamation, and breaches of agreements. The franchisee is also responsible for any claims that Canine Dimensions and the franchisee are joint employers of the franchisee's employees.
Canine Dimensions does not assume liability for the acts, errors, or omissions of those with whom the franchisee contracts. The franchisee is required to hold harmless and indemnify Canine Dimensions from all losses and expenses arising from the acts, errors, or omissions of the franchisee, their affiliates, principals, and third parties, including issues related to motor vehicle operation, security implementation, and internet use. Franchisees are also required to maintain insurance policies that protect both the franchisee and Canine Dimensions against claims related to personal injury, death, or property damage, naming Canine Dimensions as an additional named insured.