What happens to the franchisee's obligations regarding indemnification after the All Team franchise agreement terminates?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The expiration or termination of this Agreement shall not relieve FRANCHISEE of any of FRANCHISEE's obligations to ATFC existing at the time of such expiration or termination, or terminate FRANCHISEE's obligations that, by their nature, survive the expiration or termination of this Agreement, including but not limited to the provisions regarding trade secrets, non-competition, non-solicitation and indemnification.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee's obligation to indemnify All Team survives the termination or expiration of the franchise agreement. This means that even after the agreement ends, the franchisee remains responsible for protecting All Team from any liabilities, obligations, losses, damages, penalties, claims, actions, costs, and expenses, including legal fees, that may arise due to the franchisee's actions or omissions during the term of the franchise agreement. This indemnification obligation extends to All Team and its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns.
This survival of indemnification obligations is a standard practice in franchising, as it protects the franchisor from potential liabilities stemming from the franchisee's past operations. For a prospective All Team franchisee, this means that even after leaving the All Team system, they could still be held financially responsible for issues that occurred while they were operating the franchise.
It is important for a potential All Team franchisee to fully understand the scope of the indemnification clause and to maintain adequate insurance coverage to protect themselves against potential claims. They should also seek legal counsel to understand the full implications of this clause and how it may affect them after the franchise agreement ends.