Who is responsible for paying all Losses and Expenses incurred under the indemnification section of the Canine Dimensions franchise agreement?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- 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.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the franchisee or the owners of the franchise are responsible for paying all Losses and Expenses incurred under the indemnification section of the franchise agreement. This obligation stands regardless of any action or defense undertaken by Canine Dimensions itself.
The FDD defines "Losses and Expenses" broadly to include all direct and indirect costs, damages, liabilities, and expenses. This includes, but isn't limited to, reasonable attorneys' fees, court costs, settlement amounts, judgments, fines, penalties, and other litigation expenses. These expenses must arise from or be connected to any claim, demand, action, suit, or proceeding related to the operation of the franchised business, the conduct of the franchisee or its personnel, or any breach of the agreement by the franchisee.
This means that if a third party sues Canine Dimensions due to the actions of the franchisee, the franchisee is responsible for covering Canine Dimensions' legal costs and any resulting judgments or settlements. This indemnification clause is a standard provision in franchise agreements, designed to protect the franchisor from liabilities arising from the franchisee's operations. Prospective franchisees should carefully consider this obligation and ensure they have adequate insurance coverage and risk management practices in place.