Are Dryject franchisees required to defend the franchisor against claims arising from the franchisee's operation of the business?

According to Dryject's 2025 Franchise Disclosure Document, Dryject will protect the franchisee's right to use their trademarks and trade names. Dryject will also indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the Dryject name. This indicates that Dryject franchisees are not required to defend Dryject against claims arising from the franchisee's operation of the business, at least when the claim involves the use of Dryject's trademarks or trade names. Instead, Dryject will provide protection and indemnity to the franchisee in such cases. This protection extends to the franchisee's right to use Dryject's marks and trade name.

This type of arrangement is not uncommon in franchising, as franchisors often retain responsibility for protecting their brand and intellectual property. By indemnifying franchisees, Dryject assumes the financial burden of defending against claims related to the use of its trademarks and trade names. This can be a significant benefit for franchisees, as it reduces their potential legal and financial exposure.

However, it is important for prospective franchisees to understand the specific scope of this protection. The FDD excerpt focuses specifically on claims related to the use of Dryject's name and marks. It does not detail whether Dryject will defend or indemnify franchisees in other types of claims arising from the franchisee's operation of the business, such as claims related to the quality of services provided or disputes with customers. Therefore, prospective franchisees should carefully review the franchise agreement and consult with an attorney to fully understand their rights and obligations in the event of a claim.