What does the Franchisor indemnify the Floyds 99 franchisee against in the event of Claims?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
name of Floyd's 99 Holdings, LLC and may join the Franchisee as a party to the action if the Franchisor determines it to be reasonably necessary for the continued protection and quality control of the Marks, Licensed Methods and copyrighted works. The Franchisor shall bear the reasonable cost of any such action, including attorneys' fees. The Franchisee must fully cooperate with the Franchisor in any such litigation. The Franchisor shall indemnify and hold the Franchisee harmless from, and reimburse the Franchisee for, any loss, liability, claim or damages (collectively, the "Claims"), and all reasonable costs, expenses and attorneys' fees incurred defending any Claims brought against the Franchisee, or in any action in which the Franchisee is named as a party, which arises out of or is related to the Franchisee's authorized use of any Mark or copyrighted work of the Franchisor, which use is in compliance with the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the franchisor will indemnify, hold harmless, and reimburse the franchisee for any loss, liability, claim, or damages (collectively referred to as "Claims"). This also includes all reasonable costs, expenses, and attorney's fees incurred while defending against any Claims brought against the franchisee, or in any action in which the franchisee is named as a party. This indemnification applies specifically when the Claims arise out of or are related to the franchisee's authorized use of any Mark or copyrighted work of the franchisor, provided that the franchisee's use is in compliance with the terms of the Franchise Agreement.
This means that if a Floyds 99 franchisee is sued or incurs expenses due to their authorized and compliant use of Floyds 99's trademarks or copyrighted materials, Floyds 99 will cover the costs of defending against the claim and any resulting liabilities. However, it's crucial that the franchisee's use of these Marks and copyrighted works adheres strictly to the terms outlined in the franchise agreement to be eligible for indemnification.
The franchisee is required to promptly notify Floyds 99 of any Claims for which they are seeking indemnification. Floyds 99 retains the right to control the defense of any action or proceeding involving such Claims. This indemnity remains in effect even after the expiration or termination of the Franchise Agreement, providing continued protection to the franchisee under these specific circumstances.