Who bears the cost of defending a Trademark Claim against an Hck Hot Chicken franchisee?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken will indemnify the franchisee and the franchisee's owners from costs and expenses resulting from a claim against them based on the violation of a third party's intellectual property rights. This protection is provided if the franchisee's use of the marks complies with the terms of the franchise agreement and the Brand Standards Manual.

However, the franchisee must promptly notify Hck Hot Chicken of any such claim and fully cooperate with Hck Hot Chicken in the defense of the claim. This means that while Hck Hot Chicken covers the costs, the franchisee has a responsibility to assist in the legal process.

This indemnification is contingent upon the franchisee's compliance with the franchise agreement. If the franchisee is not in compliance, they may not be entitled to indemnification. This is a fairly standard arrangement in franchising, as franchisors typically want to control the defense of their trademarks but also require franchisees to operate within established guidelines to maintain brand consistency and avoid potential legal issues.