In the Afuri Ramen Dumpling franchise agreement, who is responsible for defending Afuri Ramen Dumpling in legal proceedings subject to the indemnification clause?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Indemnification. Franchisee shall indemnify, defend and hold harmless Franchisor and its affiliates against all losses, costs, proceedings, judgments, liabilities, expenses, court costs, and reasonable fees of attorneys and other professionals arising out of or related to: (1) any breach of the representations and warranties set out in this Addendum; (2) the operation of any Pre-Existing Business; or (3) any willful or negligent act or omission of Franchisee or Franchisee's owners, directors, officers, employees or agents (or those of any Pre-Existing Business). This indemnity includes but is not limited to any act or omission that contributes to any economic damage, bodily injury, sickness, disease or death. This indemnity shall survive termination of the Franchise Agreement. This indemnity is intended to be in addition to, and does not reduce the scope of, the indemnification provisions in the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the franchisee is responsible for defending Afuri Franchise Inc. and its affiliates against certain losses, costs, and liabilities. This obligation arises under the indemnification clause within the franchise agreement.
The franchisee must indemnify, defend, and hold harmless Afuri Ramen Dumpling (the Franchisor) from any losses, costs, proceedings, judgments, liabilities, expenses, court costs, and reasonable fees of attorneys and other professionals. This responsibility is triggered by (1) any breach of the representations and warranties made by the franchisee in the addendum; (2) the operation of any pre-existing business the franchisee owns; or (3) any willful or negligent act or omission of the franchisee, their owners, directors, officers, employees, or agents.
This indemnification extends to acts or omissions that contribute to economic damage, bodily injury, sickness, disease, or death. The obligation to defend and indemnify Afuri Ramen Dumpling survives the termination of the franchise agreement. This indemnification is in addition to, and does not reduce the scope of, other indemnification provisions in the franchise agreement. This means a franchisee could face significant legal and financial burdens if they are found liable for actions covered by the indemnification clause.