Does Hydrodog have the right to defend any claim against it related to the Hydrodog business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to defend claims made against them. Specifically, the franchisee agrees to indemnify, defend, and hold harmless Hydrodog and its affiliates against any claims, obligations, and damages. This includes any claims and liabilities arising from the franchisee's Hydrodog business operations, even if Hydrodog's negligence is alleged but not proven.
This indemnification extends to all obligations, damages, and costs reasonably incurred in defending against any claim against Hydrodog. These costs include reasonable fees for accountants, arbitrators, attorneys, paralegals, and expert witnesses, as well as costs of investigation, proof of facts, court costs, and other expenses related to litigation or dispute resolution. Hydrodog is not required to seek recovery from any insurer or third party to maintain a claim against the franchisee.
For a prospective Hydrodog franchisee, this means they are responsible for covering Hydrodog's legal costs and damages resulting from claims related to the franchisee's business operations. This could include a wide range of issues, from customer injuries to contract disputes. The franchisee should understand the potential financial burden of this indemnification clause and ensure they have adequate insurance coverage and risk management strategies in place. Franchisees should consult with a legal professional to fully understand the implications of this clause.