What action must a Petro Stopping Center franchisee take to be eligible for indemnification regarding trademark infringement claims?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We will indemnify you against and reimburse you for all damages for which you are held liable to third parties in any proceeding arising out of your authorized use of any of our Marks or Copyrights, pursuant to and in compliance with this Agreement, resulting from claims by third parties that your use of any of the Marks or Copyrights infringes their trademark or related rights, and for all costs you reasonably incur in the defense of any such claim in which you are named as a party, so long as you have timely notified us of the claim and have otherwise complied with the terms of this Agreement.
We will not indemnify you against the consequences of your use of the Marks or Copyrights except in accordance with the requirements of this Agreement.
You must provide written notice to us of any such claim within 10 days of your receipt of such notice and you must tender the defense of the claim to us.
We will have the right to defend any such claim and if we do so, we will have no obligation to indemnify or reimburse you for any fees or disbursements of any attorney retained by you.
If we elect to defend the claim, we will have the right to manage the defense of the claim including the right to
compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, Petro Stopping Center will indemnify a franchisee against damages from third-party claims of trademark or copyright infringement related to the franchisee's authorized use of Petro Stopping Center's marks or copyrights. This protection extends to all costs reasonably incurred in defending against such claims where the franchisee is named as a party. However, this indemnification is contingent upon the franchisee's adherence to the terms of the franchise agreement.
To be eligible for indemnification, a Petro Stopping Center franchisee must promptly notify Petro Stopping Center of any such claim and tender the defense of the claim to them. The notification must be in writing and provided within 10 days of receiving notice of the claim.
Petro Stopping Center retains the right to defend any claim, and if they choose to do so, they are not obligated to reimburse the franchisee for attorney fees. Petro Stopping Center also has the right to manage the defense, including the ability to compromise, settle, resolve, or appeal the claim. This means that while Petro Stopping Center offers protection against trademark infringement claims, they also maintain control over the legal strategy and resolution of such claims.