Who are the 'Indemnitees' that the All Team franchisee must indemnify?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Indemnification. Under no circumstances shall ATFC be liable for any act, omission, debt, or other obligation of FRANCHISEE. FRANCHISEE 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 FRANCHISEE or its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors and assigns ("Indemnitors") pursuant to or in connection with the operation of the Agency regardless of whether the Indemnities were negligent or that said negligence was a contributing factor in the liability (to the extent permitted by law).
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee is required to indemnify, defend, and hold harmless certain parties, referred to as "Indemnitees." These Indemnitees include All Team Franchise Corporation (ATFC) itself, as well as its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns. This means the franchisee is responsible for protecting these individuals and entities from liabilities, obligations, losses, damages, penalties, claims, actions, costs, and expenses arising from the franchisee's operation of the All Team agency.
This indemnification extends to any liabilities or damages suffered by the Indemnitees due to the franchisee's actions or omissions, or those of their employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns (referred to as "Indemnitors"), in connection with the operation of the All Team agency. This obligation exists regardless of whether the Indemnitees were negligent or if their negligence contributed to the liability, to the extent permitted by law.
In practical terms, this clause means that if a customer, vendor, or other third party brings a claim against All Team or its related parties due to something that occurred at the franchisee's agency, the franchisee will be responsible for covering the costs of defending against the claim and paying any resulting damages. This is a significant responsibility for the franchisee, as it could potentially involve substantial legal and financial exposure. Franchisees should consult with a legal professional to fully understand the scope of this indemnification obligation and how to mitigate potential risks.