Under the indemnification clause, what is Dq Treat required to provide to the indemnitor?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
EACH PARTY AGREES TO: (I) PROVIDE THE INDEMNITOR WITH PROMPT NOTICE OF ANY CLAIM FOR INDEMNIFICATION UNDER THIS SECTION; (II) GRANT THE INDEMNITOR CONTROL OVER THE DEFENSE OR SETTLEMENT OF ANY SUCH CLAIM (PROVIDED THAT THE INDEMNITOR MAY NOT AGREE TO ANY SETTLEMENT OTHER THAN MONETARY DAMAGES); AND (III)
COOPERATE FULLY WITH THE INDEMNITOR, AT THE REASONABLE EXPENSE OF THE INDEMNITOR, IN THE DEFENSE OR SETTLEMENT OF ANY SUCH CLAIM.
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, each party involved in the agreement (referred to as an "Indemnitee") is entitled to certain protections under the indemnification clause. Specifically, Dq Treat agrees to provide the Indemnitor with prompt notification of any claim for indemnification. This ensures that the Indemnitor is immediately aware of any potential liabilities or legal actions that may arise.
In addition to providing prompt notice, Dq Treat must grant the Indemnitor control over the defense or settlement of any claim. This allows the Indemnitor to manage the legal strategy and make decisions regarding the resolution of the claim. However, there is a condition that the Indemnitor may not agree to any settlement other than monetary damages.
Furthermore, Dq Treat is obligated to cooperate fully with the Indemnitor in the defense or settlement of any claim. This cooperation is to be provided at the reasonable expense of the Indemnitor, meaning that the Indemnitor will cover the costs associated with this cooperation. This ensures that the Indemnitor has the necessary support and resources to effectively defend or settle the claim.