What is the Recipient's obligation to Zoomin Groomin regarding third-party claims resulting from a breach of the Non-Disclosure Agreement?

According to Zoomin Groomin's 2025 Franchise Disclosure Document, the franchisee, as the Recipient of confidential information, has specific obligations regarding third-party claims resulting from a breach of the Non-Disclosure Agreement. The franchisee agrees to defend, indemnify, and hold harmless Zoomin Groomin and its affiliates, officers, directors, agents, affiliates, distributors, representatives, and employees. This means that if a third party brings a claim against Zoomin Groomin due to the franchisee's breach of the Non-Disclosure Agreement, the franchisee is responsible for defending Zoomin Groomin against that claim.

Furthermore, the franchisee is responsible for covering any losses, damages, and costs that Zoomin Groomin incurs as a result of the breach. This includes reasonable attorney's fees and expenses. Essentially, the franchisee is financially responsible for any fallout from their breach of the Non-Disclosure Agreement that affects Zoomin Groomin and related parties.

This indemnity clause is a standard provision in franchise agreements to protect the franchisor from liabilities caused by the franchisee's actions. It is important for a prospective Zoomin Groomin franchisee to understand the scope of this obligation and ensure they have adequate measures in place to protect confidential information and prevent breaches of the Non-Disclosure Agreement. The franchisee should consult with a legal professional to fully understand their obligations under this clause.