What are the conditions for a Deer Solution franchisee to be reimbursed for direct expenses incurred while assisting the Franchisor in litigation?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 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 Deer Solution 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 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, Deer Solution will indemnify and hold the franchisee harmless from losses, expenses, claims, or liabilities arising from the franchisor's gross negligence in the operation of the franchisee's Deer Solution business. If such a situation occurs, Deer Solution will cover the franchisee's reasonable costs, fees, and expenses related to defending against any claim, lawsuit, or investigation.
These covered expenses include reasonable accountant fees, attorney fees, expert witness fees, court costs, deposition fees, travel expenses, and other litigation expenses. However, for the franchisee to be eligible for indemnification, they must immediately notify Deer Solution of any claim, lawsuit, demand, proceeding, or investigation.
This indemnification agreement survives the termination, expiration, or transfer of the franchise agreement. This means that even after the franchise relationship ends, Deer Solution remains responsible for covering these costs if the underlying issue occurred during the franchise term and was due to Deer Solution's gross negligence.