Under the Care Plus Medical Ucc agreement, can an Indemnitee assume the defense of an Action?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.2 Assumption. An Indemnitee may elect to assume the defense of any Action subject to this indemnification, and control all aspects of defending the Action, including negotiations and settlement, at Franchisee's expense. Such an undertaking shall not diminish Franchisee's obligation to indemnify the Indemnitees.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, an Indemnitee has the option to assume the defense of any Action that is subject to indemnification. This means that Care Plus Medical Ucc, its parent entities, subsidiaries, affiliates, and their respective owners, directors, officers, employees, agents, successors, and assignees can choose to take over the legal defense of a claim.
If an Indemnitee chooses to assume the defense, they will control all aspects of defending the Action, including negotiations and settlement. However, the franchisee is still responsible for covering the expenses associated with the defense.
It is important to note that even if the Indemnitee assumes the defense, the franchisee's obligation to indemnify the Indemnitees remains in effect. This means that the franchisee is still responsible for covering any losses resulting from the Action, even if the Indemnitee is controlling the legal strategy.