What does the Hydrodog franchisee agree to do in regards to indemnification?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.4 Indemnification. You agree to indemnify, defend and hold harmless us, our affiliates, our parents, and our and our affiliates' and parents' respective shareholders, directors, officers, employees, agents, successors and assignees (the "Indemnified Party(ies)") against and to reimburse any one or more of the Indemnified Parties for all claims, obligations and damages described in this Section, any and all taxes described in this Agreement and any and all claims and liabilities directly or indirectly arising out of your HydroDog Business's operation (even if our negligence is alleged, but not proven) or your breach of this Agreement. For purposes of this indemnification, "claims" includes all obligations, damages (actual, consequential or otherwise) and costs reasonably incurred in the defense of any claim against any of the Indemnified Parties, including, without limitation, reasonable accountants', arbitrators', attorneys', paralegals' and expert witness fees, costs of investigation and proof of facts, court costs, other expenses of litigation, arbitration or alternative dispute resolution and travel and living expenses. We have the right to defend any such claim against us. This indemnity will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement. Under no circumstances will we or any other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and expenses, in order to maintain and recover fully a claim against you. You agree that a failure to pursue such recovery or mitigate a loss will in no way reduce or alter the amounts we or another Indemnified Party may recover from you.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, franchisees must indemnify Hydrodog and its related parties. This means the franchisee agrees to protect, defend, and hold harmless Hydrodog, its affiliates, parents, shareholders, directors, officers, employees, agents, successors, and assignees from any claims, obligations, and damages. This includes taxes and liabilities arising from the operation of the Hydrodog business or any breach of the franchise agreement by the franchisee.
The franchisee's indemnification extends to covering all costs incurred in defending against any claims, including accounting, arbitration, legal, and expert witness fees, as well as investigation costs, court costs, and other litigation expenses. This obligation remains in effect even after the franchise agreement expires or is terminated. Hydrodog has the right to defend any claim made against it, and neither Hydrodog nor any indemnified party is required to seek recovery from insurers or mitigate losses before making a claim against the franchisee.
This indemnification clause places a significant financial responsibility on the Hydrodog franchisee. Even if Hydrodog's negligence is alleged but not proven, the franchisee is still responsible for indemnifying Hydrodog. This could potentially expose the franchisee to substantial costs if legal claims or other liabilities arise from their business operations. Franchisees should carefully consider this obligation and ensure they have adequate insurance coverage and risk management strategies in place.