What is a 'Third Party Claim' in the context of Dog Haus indemnification?

According to Dog Haus's 2025 Franchise Disclosure Document, a "Third Party Claim" arises when a third party makes a claim against the Indemnitees (Franchisor, its Affiliates, and their respective directors, officers, employees, shareholders, and agents). This is in contrast to a "Direct Claim," which does not result from a third party's claim against the Indemnitees.

In practical terms, this means that if someone outside of the Dog Haus franchise system (e.g., a customer, supplier, or competitor) sues Dog Haus or its affiliates, it would be considered a Third Party Claim. The distinction between a Third Party Claim and a Direct Claim is important because it affects the procedures for indemnification, including the notices that must be given.

Dog Haus requires that the Indemnitees promptly notify the Indemnitors (Area Developer and its Owners and Affiliates) of any Indemnifiable Claim. The notice must specify whether the claim is a Third Party Claim or a Direct Claim and provide the factual basis and amount of the claim, if known. Failure to provide timely notice could result in the Indemnitors being able to offset losses and expenses against the amount claimed by the Indemnitees. This highlights the importance of franchisees understanding their indemnification obligations and the need to promptly report any potential claims to Dog Haus.