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

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog is not required to participate in a franchisee's defense or indemnify them for damages or expenses in proceedings involving a copyright. This means that if a Hydrodog franchisee faces a copyright infringement claim related to their business operations, Hydrodog is not obligated to provide legal assistance or cover any resulting costs. The franchisee would be solely responsible for handling the legal defense and any associated financial burdens.

This lack of required support could pose a significant financial risk for franchisees. Copyright disputes can be costly, involving legal fees, potential damages, and other related expenses. Franchisees should be aware that they will need to bear these costs independently if a copyright issue arises.

While Hydrodog is not obligated to defend or indemnify, the FDD states that they intend to protect or defend copyrights or confidential information when it is in the best interest of the System. This indicates that Hydrodog may, at its discretion, offer support in certain situations, but franchisees cannot rely on this as a guaranteed right. Prospective franchisees should inquire about the specific circumstances under which Hydrodog might provide assistance and what factors would influence their decision.

It is important for potential Hydrodog franchisees to fully understand their responsibilities regarding copyright compliance and to consider obtaining their own legal counsel and insurance coverage to mitigate the risks associated with potential copyright disputes. They should also clarify with Hydrodog what types of support, if any, might be available in such situations, even if not contractually guaranteed.