Does Hydrodog need to participate in a franchisee's defense and/or indemnify them for damages or expenses in proceedings involving a copyright?

According to the 2025 Hydrodog FDD, Hydrodog is not required to participate in a franchisee's defense or indemnify them for damages or expenses in copyright-related legal proceedings. While Hydrodog claims copyright protection and proprietary rights in various aspects of its system, including the Operations Manual, website, and marketing materials, they are not obligated by any agreement to protect or defend these copyrights. However, Hydrodog states that it intends to do so when it is in the best interest of the System.

This means that if a Hydrodog franchisee faces a copyright infringement claim related to their business operations, they will likely be responsible for their own legal defense and any associated costs. This could include expenses for attorneys, court fees, and potential damages awarded to the copyright holder. It is important for prospective franchisees to understand this lack of indemnification and factor it into their risk assessment and business planning.

While Hydrodog is not obligated to defend or indemnify franchisees, they do reserve the right to protect their copyrights when it is in the best interest of the System. This suggests that Hydrodog may choose to get involved in certain cases, but franchisees cannot rely on this as a guaranteed form of protection. Therefore, franchisees should ensure they fully understand and comply with Hydrodog's guidelines for using copyrighted materials to minimize the risk of infringement claims.