Does the indemnification obligation of an All Team USER extend to damages or injuries suffered by Indemnitees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
USER will indemnify, defend and save harmless ATFC and its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors and assigns ("Indemnitees") from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, costs and expenses (including without limitation legal fees and expenses) of any kind and nature whatsoever, including without limitation damages or injuries suffered by Indemnitees, which may be imposed on, incurred by or asserted against the Indemnitees in any way arising out of the acts or omissions of USER or its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors and assigns ("Indemnitors") pursuant to or relating to this Agreement or the transactions or relationships contemplated hereby or a breach or default by USER under this Agreement regardless of whether the Indemnities were negligent or that said negligence was a contributing factor in the liability.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the USER's indemnification extends to damages or injuries suffered by Indemnitees. The USER is obligated to indemnify, defend, and hold harmless ATFC (All Team Franchise Corporation) and its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns (collectively referred to as "Indemnitees") from any liabilities, obligations, losses, damages, penalties, claims, actions, costs, and expenses. This includes damages or injuries suffered by Indemnitees.
The indemnification covers any issues arising from the acts or omissions of the USER or its own employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns (referred to as "Indemnitors"). This obligation is tied to the agreement, the transactions or relationships it contemplates, or any breach or default by the USER under the agreement.
Notably, this indemnification applies regardless of whether the Indemnitees were negligent or if their negligence contributed to the liability. This means that even if All Team's own negligence plays a part, the USER may still be responsible for covering the damages or injuries suffered by the Indemnitees. This places a significant responsibility on the USER to ensure their operations and conduct do not lead to liabilities for All Team.