Under what conditions will Checkersrallys indemnify a franchisee for damages related to the use of a Mark?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
We will indemnify you against, and reimburse you for, all damages for which you are held liable in any proceeding arising out of your authorized use of any Mark under the
Franchise Agreement and, except as provided in the Franchise Agreement, for all costs you reasonably incur in defending any claim brought against you or any proceeding in which you are named as a party, if you have timely notified us of such claim or proceeding and you and your owners are in compliance with the Franchise Agreement and all other agreements entered into with us and our affiliates. At our sole discretion, we will be entitled to prosecute, defend or settle any proceeding arising out of your use of any Mark, and, if we decide to prosecute, defend or settle any such matter, we will have no obligation to indemnify or reimburse you for any fees or disbursements of counsel retained by you.
Source: Item 13 — TRADEMARKS (FDD pages 60–63)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys will indemnify a franchisee against damages for which the franchisee is held liable in a proceeding arising out of the franchisee's authorized use of any Mark under the Franchise Agreement. Checkersrallys will also reimburse the franchisee for all costs reasonably incurred in defending any claim brought against them or any proceeding in which they are named as a party.
However, this indemnification and reimbursement are contingent upon the franchisee timely notifying Checkersrallys of such claim or proceeding. Additionally, the franchisee and their owners must be in compliance with the Franchise Agreement and all other agreements entered into with Checkersrallys and its affiliates to be eligible for indemnification.
Checkersrallys retains the right to prosecute, defend, or settle any proceeding arising out of the franchisee's use of any Mark at its sole discretion. If Checkersrallys decides to handle the legal proceedings, it has no obligation to indemnify or reimburse the franchisee for any fees or disbursements of counsel retained by the franchisee.