What costs are included in the indemnification provided by Closet Storage Concepts for trademark infringement?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall indemnify and hold Franchisee harmless from any suits, proceedings, demands, obligations, actions or claims, including costs and reasonable attorneys' fees, for any alleged infringement under federal or state trademark law arising solely from Franchisee's use of the Proprietary Marks in accordance with this Agreement or as otherwise set forth by Franchisor in writing if Franchisee has promptly notified Franchisor of such claim and cooperated in the defense of any claim. If Franchisor or Licensor undertakes the defense or prosecution of any litigation pertaining to any of the Proprietary Marks, Franchisee agrees to execute any and all documents and do such acts and things as may, in the opinion of counsel for Franchisor or Licensor, be necessary to carry out such defense or prosecution.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the franchisor will indemnify and hold the franchisee harmless from suits, proceedings, demands, obligations, actions, or claims, including costs and reasonable attorneys' fees. This protection applies to any alleged infringement under federal or state trademark law.
However, this indemnification is conditional. It only applies if the infringement arises solely from the franchisee's use of the Proprietary Marks in accordance with the Franchise Agreement or as otherwise set forth by Closet Storage Concepts in writing. Furthermore, the franchisee must promptly notify Closet Storage Concepts of any such claim and cooperate in the defense of the claim.
In the event of litigation, the franchisee must execute all documents and perform all actions deemed necessary by the franchisor's counsel to carry out the defense or prosecution. This clause ensures that Closet Storage Concepts maintains control over the legal strategy and defense of its trademarks, while providing some financial protection to the franchisee under specific circumstances.