Who has the right to control settlement, litigation, or other proceedings arising from alleged Intellectual Property infringement related to a Crawlspace Medic franchise?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE AGREES TO PAY FOR ALL THE CRAWLSPACE MEDIC INDEMNITEES' LOSSES, EXPENSES (INCLUDING, BUT NOT LIMITED TO ATTORNEYS' FEES) OR CONCURRENT OR CONTRIBUTING LIABILITY INCURRED IN CONNECTION WITH ANY ACTION, SUIT, PROCEEDING, INQUIRY (REGARDLESS OF WHETHER THE SAME IS REDUCED TO JUDGMENT OR DETERMINATION), OR ANY SETTLEMENT THEREOF FOR THE INDEMNIFICATION GRANTED BY FRANCHISEE HEREUNDER. THE CRAWLSPACE MEDIC INDEMNITEES SHALL HAVE THE RIGHT TO SELECT AND APPOINT INDEPENDENT COUNSEL TO REPRESENT ANY OF THE CRAWLSPACE MEDIC INDEMNITEES IN ANY ACTION OR PROCEEDING COVERED BY THIS INDEMNITY.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic Indemnitees have the right to select and appoint independent counsel to represent any of them in any action or proceeding covered by the indemnity.
Specifically, the franchisee agrees to pay for all Crawlspace Medic Indemnitees' losses, expenses (including attorneys' fees), or concurrent or contributing liability incurred in connection with any action, suit, proceeding, or inquiry, regardless of whether it's reduced to judgment or determination, or any settlement thereof for the indemnification granted by the franchisee. This means that if a claim arises related to the franchisee's Crawlspace Medic franchise operations, the franchisor has the right to choose legal representation and the franchisee is responsible for covering the associated costs.
This clause highlights the importance of franchisees adhering to Crawlspace Medic's standards and guidelines to minimize the risk of claims. It also emphasizes the potential financial burden on the franchisee in case of legal disputes, as they are responsible for the franchisor's legal expenses in addition to their own. Franchisees should carefully consider this indemnification clause and potentially seek legal counsel to fully understand its implications.