Under what conditions will Kidokinetics indemnify a franchisee from losses arising from third-party claims regarding the use of Marks?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 13 of the FDD is hereby amended to state that we will protect your rights under the Franchise Agreement to use the Marks, or indemnify you from any loss, costs, or expenses arising out of any third-party claim, suit or demand regarding your use of the Marks, if your use of the Marks is in compliance with the provisions of the Franchise Agreement and our System standards.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, Kidokinetics will protect a franchisee's rights to use the Marks under the Franchise Agreement. Kidokinetics will indemnify a franchisee from any loss, costs, or expenses arising out of any third-party claim, suit, or demand regarding the franchisee's use of the Marks.
However, this protection is conditional. The franchisee's use of the Marks must be in compliance with the provisions of the Franchise Agreement and Kidokinetics' System standards. This means that if a franchisee deviates from the approved usage of the trademarks, logos, or other branding elements, they may not be covered by this indemnification.
This condition is fairly standard in franchising, as franchisors need to maintain brand consistency and protect their trademarks. Franchisees should carefully review the Franchise Agreement and System standards to ensure they understand the proper use of the Marks and avoid any actions that could jeopardize their indemnification coverage.