Under what circumstances will PAR not have any indemnification obligations to a Dq Treat Participating Location regarding intellectual property infringement?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, PAR will not have any indemnification obligations hereunder to the extent such infringement is caused by: the modification of the SSS by Participating Location or a third party at Participating Location's request; the use of the SSS in conjunction with equipment or software not provided or approved by PAR; or use of the SSS inconsistent with its intended purpose or which is not in conformance with PAR's reasonable instructions.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, PAR will not have indemnification obligations to a Participating Location for intellectual property infringement under specific circumstances. These circumstances include infringement caused by the Participating Location's modification of the SSS (presumably the software or system) or modifications by a third party at the Participating Location's request.
PAR also avoids indemnification obligations if the infringement results from the use of the SSS in conjunction with equipment or software not provided or approved by PAR. Similarly, using the SSS in a manner inconsistent with its intended purpose or not following PAR's reasonable instructions will negate PAR's indemnification duties.
These stipulations mean that Dq Treat franchisees must adhere strictly to PAR's guidelines and approved configurations when using the SSS to maintain PAR's obligation to defend and indemnify them against intellectual property claims. Deviating from approved uses or modifying the system without PAR's consent could leave the franchisee vulnerable to legal liabilities without PAR's support.