Is Deka Lash required to participate in a franchisee's defense or indemnify them for expenses in trademark litigation?

According to Deka Lash's 2024 Franchise Disclosure Document, Deka Lash is not required to participate in a franchisee's defense or indemnify them for expenses or damages if the franchisee is involved in an administrative or judicial proceeding regarding a licensed trademark. This means that if a franchisee faces a claim of trademark infringement related to the Deka Lash trademarks, they will be responsible for their own defense and any associated costs.

This lack of required support from Deka Lash could pose a significant financial risk for franchisees. Legal battles, especially those involving trademarks, can be expensive, and franchisees may need to bear these costs independently. It is important for prospective franchisees to understand this potential liability and factor it into their financial planning.

While Deka Lash retains the sole right to control any administrative proceedings or litigation involving their trademarks, this control does not extend to providing financial or legal assistance to franchisees facing such claims. This arrangement is not uncommon in the franchise industry, where franchisees often operate as independent entities responsible for their own legal compliance and defense. However, the extent of franchisor support in trademark matters can vary, so prospective franchisees should carefully evaluate the terms offered by Deka Lash and consider obtaining appropriate insurance coverage to mitigate potential risks.