Does the Ledgers Franchise Agreement require Ledgers to indemnify a franchisee for damages if they are a party to an administrative proceeding involving a trademark?

According to the 2025 Ledgers Franchise Disclosure Document, Ledgers is not required to defend or indemnify a franchisee in an administrative or judicial proceeding involving a trademark licensed to the franchisee, even if the proceeding is resolved unfavorably to the franchisee. This means that if a franchisee is involved in a legal dispute regarding the use of a Ledgers trademark, the franchisee will be responsible for their own legal defense and any resulting expenses or damages.

This lack of required indemnification is a significant risk for prospective Ledgers franchisees. Trademark disputes can be costly, and franchisees could face substantial financial burdens if they are sued for trademark infringement. It is common in some franchise systems for the franchisor to provide some level of support or indemnification in trademark-related legal matters, as the franchisor typically controls the trademarks and dictates their usage.

Prospective franchisees should carefully consider this provision and seek legal counsel to understand the potential risks and liabilities associated with trademark disputes. They may also want to inquire about Ledgers's history of trademark litigation and the availability of insurance coverage to protect against such risks. Understanding the potential costs and responsibilities related to trademark protection is crucial before investing in a Ledgers franchise.