Does the Afuri Ramen Dumpling franchisor's insurance relieve the franchisee of indemnification obligations?

According to the 2024 Afuri Ramen Dumpling Franchise Disclosure Document, the franchisee's obligation to maintain insurance coverage is not affected by any separate insurance maintained by the franchisor. Furthermore, the maintenance of insurance by Afuri Franchise Inc. does not relieve the franchisee of any indemnification obligations under the Franchise Agreement. This means that even if Afuri Ramen Dumpling has its own insurance, the franchisee is still responsible for covering losses, costs, and liabilities as outlined in the indemnification provisions of the agreement.

This clause places a significant responsibility on the franchisee to ensure they have adequate insurance coverage to protect themselves against potential claims. The franchisee should carefully review the required minimum insurance coverage and consider whether additional coverage is necessary for their specific circumstances.

It is important for prospective Afuri Ramen Dumpling franchisees to consult with an insurance professional to determine the appropriate level of coverage and to fully understand their indemnification obligations under the Franchise Agreement. Franchisees should also seek legal counsel to fully understand the implications of the indemnification clause and how it interacts with their insurance coverage.