Regarding indemnification under the Canine Dimensions franchise agreement, what is the timeframe for the franchisee and owners to notify the franchisor of any action?

According to Canine Dimensions' 2025 Franchise Disclosure Document, the franchisee and owners must provide the franchisor with immediate notice of any action subject to indemnification. This means that as soon as a franchisee or owner becomes aware of any situation that could lead to a claim or lawsuit where they might need indemnification (protection from financial loss), they must inform Canine Dimensions Franchising, LLC without delay.

This immediate notification is crucial because it allows Canine Dimensions to take control of the defense and/or settlement of the action. While Canine Dimensions may choose to manage the legal proceedings, the franchisee's obligation to cover the costs and liabilities (indemnify the Indemnified Parties) remains in effect. This includes all direct and indirect costs, damages, and expenses, such as attorney's fees and settlement amounts.

The term 'Indemnified Parties' includes Canine Dimensions, its successors, assigns, and affiliates, as well as their respective officers, directors, shareholders, agents, representatives, independent contractors, servants, and employees. This broad definition means that the franchisee's indemnification responsibilities extend to a wide range of individuals and entities associated with the Canine Dimensions brand. Therefore, franchisees must act quickly to inform Canine Dimensions of any potential issues to ensure they can properly manage the situation and mitigate potential financial liabilities.

Failing to provide immediate notice could potentially jeopardize the franchisee's indemnification coverage or ability to receive support from Canine Dimensions in managing the claim. This requirement is a standard practice in franchising, as it allows the franchisor to protect its brand and manage legal risks effectively.