Under what circumstances must an All Team franchisee indemnify 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 associated parties. This indemnification extends to ATFC's employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns (collectively known as "Indemnitees").
The franchisee's obligation to indemnify covers any liabilities, obligations, losses, damages, penalties, claims, actions, costs, and expenses, including legal fees, that the Indemnitees may incur. This broad coverage arises from any acts or omissions of the franchisee (USER) or its own employees, agents, officers, directors, parents, subsidiaries, affiliates, successors, and assigns (collectively known as "Indemnitors").
The indemnification requirement applies if these acts or omissions are related to the Franchise Agreement, the transactions or relationships it contemplates, or any breach or default by the franchisee under the agreement. Importantly, this obligation exists regardless of whether the Indemnitees were negligent or if their negligence contributed to the liability. This means that even if All Team was partially at fault, the franchisee may still be responsible for covering All Team's losses and expenses.