factual

Is Afuri Ramen Dumpling liable to the franchisee for the franchisee's own acts or omissions?

Afuri_Ramen_Dumpling Franchise · 2024 FDD

Answer from 2024 FDD Document

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 indemnifying Afuri Franchise, Inc. and its affiliates against losses, costs, and liabilities arising from the franchisee's actions. This means that Afuri Ramen Dumpling is not liable for the franchisee's acts or omissions; rather, the franchisee is responsible for covering costs incurred by Afuri Ramen Dumpling due to the franchisee's actions.

Specifically, the franchisee must indemnify, defend, and hold harmless Afuri Ramen Dumpling against all losses, costs, proceedings, judgments, liabilities, expenses, court costs, and reasonable attorney fees. This obligation extends to issues arising from any breach of representations and warranties, the operation of any pre-existing business of the franchisee, or any willful or negligent act or omission by the franchisee, its owners, directors, officers, employees, or agents.

This indemnification covers any act or omission that contributes to economic damage, bodily injury, sickness, disease, or death. It's important to note that this responsibility survives the termination of the Franchise Agreement, meaning the franchisee's liability continues even after the agreement ends. This indemnification is in addition to any other indemnification provisions in the Franchise Agreement, further emphasizing the franchisee's responsibility for their own actions.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.