Who is responsible for indemnifying Canine Dimensions against claims arising from their operation of the franchise after the franchisee's death or disability?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
ted on any vehicles owned or operated by Franchisee in connection with the Franchised Business.
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.
- 18.3.1 Franchisee and Owners must give Franchisor immediate notice of any Action subject to indemnification. Franchisor may elect to control the defense and/or settlement of any such Action, without diminishing Franchisee's obligation to indemnify the Indemnified Parties.
- 18.3.2 Franchisor may consent to settlements or take remedial action to protect persons, property, or reputation if there are grounds to believe any acts or circumstances enumerated in this Section have occurred.
- 18.3.3 All Losses and Expenses incurred under this Section will be chargeable to and paid by Franchisee or Owners, regardless of any action or defense undertaken by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the franchisee and each owner of any equity interest in the franchisee are jointly and severally responsible for indemnifying Canine Dimensions Franchising, LLC against losses and expenses. This indemnification extends to claims arising from the operation or condition of the franchised business, the conduct of business, and any acts or omissions of the franchisee, its employees, agents, or contractors.
This means that if a claim arises from the operation of the Canine Dimensions franchise, even after the franchisee's death or disability, the franchisee's estate or the owners of the equity interest in the franchise would be responsible for covering the associated losses and expenses. These expenses include direct and indirect costs, damages, liabilities, and expenses such as reasonable attorneys' fees, court costs, settlement amounts, judgments, fines, penalties, and other litigation expenses.
The franchisee and owners must immediately notify Canine Dimensions of any action subject to indemnification. Canine Dimensions has the option to control the defense and settlement of any such action, but this does not reduce the franchisee's obligation to indemnify Canine Dimensions. Franchisees should be aware that this obligation to indemnify Canine Dimensions is a significant financial responsibility and should be carefully considered before investing in the franchise.