What costs will Dermani Medspa reimburse the franchisee for, regarding actions taken to protect the Marks?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
MEDSPA®. The Franchisee Group further indemnifies and holds the Franchisor Group harmless against, and agrees to reimburse them for any loss, liability, expense, or damages (actual or consequential)
including, without limitation, reasonable attorneys', accountants', and expert witness fees, costs of investigation and proof of facts, court costs, and other litigation and travel and living expenses, which any member of the Franchisor Group may suffer with respect to any claims or causes of action which any customer, creditor, or other third party now has, ever had, or hereafter would or could have, as a result of, arising from, or under the Franchise [Development] Agreement, the Franchised Business, or the dermani MEDSPA®, but only to the extent such liability relates to actions occurring prior to the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
The 2025 Dermani Medspa FDD states that the franchisee is responsible for indemnifying and holding the franchisor harmless. This means the franchisee may have to reimburse Dermani Medspa for losses, liabilities, expenses, or damages related to claims or actions connected to the franchise agreement, the franchised business, or the Dermani Medspa marks.
These reimbursable costs include, but are not limited to, reasonable attorneys', accountants', and expert witness fees. The franchisee may also have to cover costs related to investigation and proof of facts, court costs, and other litigation expenses. Additionally, travel and living expenses incurred by Dermani Medspa in connection with these claims could be the responsibility of the franchisee.
However, the franchisee's responsibility to cover these costs is limited to liabilities related to actions that occurred before the effective date of the franchise agreement. This means that the franchisee is not responsible for actions or claims that arise after the franchise agreement has been signed and has taken effect. This indemnification clause is a standard practice in franchising, designed to protect the franchisor from liabilities arising from the franchisee's operations.