factual

Under what condition will Casiola reimburse a franchisee for expenses related to infringement litigation?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisor shall indemnify, defend, and hold Franchisee and Franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns and successors (the "Franchisee Indemnified Parties") harmless from all losses, expenses, claims, causes of action, lawsuits, liabilities, taxes, costs, demands, proceedings, investigations, hearings, and/or damages solely arising out of, or solely relating to, Franchisor's gross negligence in the operation of Franchisee's Casiola Business that was the direct cause of any such loss, expense, liability or damage provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing, and Franchisor shall pay all of the Franchisee Indemnified Parties' reasonable costs, fees and expenses of defending any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing brought against any of the Franchisee Indemnified Parties or any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing in which any of the Franchisee

Indemnified Parties is named as a party, including, without limitation, reasonable accountant fees, attorney fees, and expert witness fees, court costs, deposition fees, travel expenses and other litigation expenses provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing. Franchisor agrees that the terms of this Article 10.C. shall survive the termination, expiration or Transfer of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 47–209)

What This Means (2024 FDD)

According to Casiola's 2024 Franchise Disclosure Document, Casiola will indemnify, defend, and hold the franchisee harmless from losses, expenses, claims, or damages if they arise solely from Casiola's gross negligence in the operation of the franchisee's Casiola Business. This gross negligence must be the direct cause of the loss, expense, or damage.

For Casiola to cover these costs, the franchisee must immediately notify Casiola of any claim, lawsuit, or proceeding. If these conditions are met, Casiola will cover the franchisee's reasonable costs, fees, and expenses related to defending against the claim. These expenses include accountant fees, attorney fees, expert witness fees, court costs, deposition fees, travel expenses, and other litigation expenses.

This indemnification agreement survives the termination, expiration, or transfer of the Franchise Agreement, meaning Casiola's obligation to cover these costs continues even if the franchise relationship ends. This protection is contingent on the franchisee promptly informing Casiola of any potential claims or legal actions, allowing Casiola to take appropriate action.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.