What is the scope of the All Team franchisee's indemnification of ATFC?
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 franchisee, referred to as USER, is required to indemnify, defend, and hold harmless All Team Franchise Corporation (ATFC) and its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns (collectively, "Indemnitees"). This indemnification covers any and all liabilities, obligations, losses, damages, penalties, claims, actions, costs, and expenses, including legal fees, that the Indemnitees may incur.
The scope of this indemnification extends to any issues arising from the acts or omissions of the franchisee (USER) or its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns (collectively, "Indemnitors"). This includes matters related to the Franchise Agreement, the transactions or relationships contemplated by the agreement, or any breach or default by the franchisee under the agreement. The indemnification applies regardless of whether the Indemnitees were negligent or if their negligence contributed to the liability.
In simpler terms, as an All Team franchisee, you are responsible for covering any costs or damages that All Team incurs due to your actions or the actions of your employees, even if All Team was partially at fault. This is a broad indemnification clause that places significant responsibility on the franchisee to manage their business in a way that minimizes risk to All Team. Franchisees should consult with a legal professional to fully understand the implications of this indemnification clause.