What is the Focalpoint Coaching franchisee's obligation regarding cooperation with the Indemnified Parties in defending a claim?

According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a franchisee is obligated to fully cooperate with the Indemnified Parties in defending any claim against them. This cooperation involves assisting the Indemnified Parties in their defense. Furthermore, the franchisee is responsible for reimbursing the Indemnified Parties for all costs and expenses incurred in defending such claims. These costs include court costs and reasonable attorneys' fees.

The franchisee must make these reimbursements within ten days of receiving an invoice from the Indemnified Parties. The invoice will detail the costs, expenses, and attorneys' fees incurred. This financial responsibility underscores the importance of understanding the scope of potential liabilities and ensuring adequate insurance coverage.

This requirement means that if a claim arises from the franchisee's business operations, employment matters, or any breach of the Franchise Agreement, the franchisee is not only responsible for the initial damages but also for the legal expenses incurred by Focalpoint Coaching in defending against the claim. This obligation extends even to claims allegedly caused by the Indemnified Party's negligence, unless the claims are determined to be caused solely by Focalpoint Coaching's gross negligence or willful misconduct. The franchisee must also provide written notice to Focalpoint Coaching and the Indemnified Parties within three days of becoming aware of any situation that could lead to a claim for indemnification.