What is the dependency for Crave franchisees to receive indemnification against damages for the use of its Marks?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Indemnification against and reimbursement for all damages for which you are held liable in any proceeding arising out of your use of any of the Marks (including settlement amounts), if you and your Principals have fully complied with the terms of the Franchise Agreement. (Franchise Agreement, Section 9.4.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–42)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee's eligibility for indemnification against damages from the use of Crave's trademarks hinges on full compliance with the Franchise Agreement's terms. Specifically, both the franchisee and their Principals must adhere to all stipulations outlined in the agreement to qualify for this protection.
This indemnification covers damages for which the franchisee is held liable in any legal proceeding arising from their authorized use of Crave's trademarks, including any settlement amounts. This means that if a franchisee is sued for trademark infringement while operating their Crave business according to the Franchise Agreement, Crave will cover the damages and legal costs, provided the franchisee and their Principals have fully complied with the agreement.
This condition underscores the importance of franchisees thoroughly understanding and adhering to every aspect of the Franchise Agreement. Failure to comply, even in seemingly minor ways, could jeopardize their right to indemnification, potentially leaving them financially exposed in the event of a trademark-related legal dispute. Prospective franchisees should carefully review the Franchise Agreement with legal counsel to ensure they fully understand their obligations and the implications of non-compliance.