What costs will Degree Wellness reimburse me for in the defense of a trademark infringement claim?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.5 Indemnification of Franchise Owner.
We agree to indemnify you against, and reimburse you for, all damages for which you are held liable in any trademark infringement proceeding arising out of your use of any Mark pursuant to and in compliance with this Agreement, and for all costs you reasonably incur in the defense of any such claim in which you are named as a party, so long as you have timely notified
us of the claim, provided us with the opportunity to defend the claim, cooperated with the defense of the claim, and otherwise complied with this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Degree Wellness will indemnify a franchisee against all damages for which the franchisee is held liable in a trademark infringement proceeding. This applies only if the infringement arises out of the franchisee's use of any mark, and only if that use is pursuant to and in compliance with the Franchise Agreement. Degree Wellness will also reimburse the franchisee for all costs reasonably incurred in the defense of such a claim in which the franchisee is named as a party.
However, this reimbursement is conditional. The franchisee must have notified Degree Wellness of the claim in a timely manner and provided Degree Wellness with the opportunity to defend the claim. The franchisee must also have cooperated with the defense of the claim and otherwise complied with the Franchise Agreement.
This type of indemnification is relatively standard in franchising. It protects franchisees from liability arising from the use of the franchisor's trademarks, provided the franchisee follows the franchisor's guidelines and cooperates in the defense of any claims. A prospective Degree Wellness franchisee should carefully review the conditions attached to this indemnification to ensure they understand their obligations.