Does the indemnification agreement in the Amorino release require payment to the claimant as a condition precedent to recovery?

According to Amorino's 2025 Franchise Disclosure Document, the indemnification agreement within the release does not require payment to the claimant as a condition that must be met before recovery can occur. Specifically, the agreement states that even if a claim, demand, or suit is initiated against a released party due to an assignment, transfer, or subrogation, the assigning or transferring party is still obligated to indemnify and protect the released party from any associated costs, including attorney's fees.

This means that Amorino franchisees are not required to first pay the claimant before seeking recovery under the indemnification agreement. This clause protects the released party by ensuring they can pursue indemnification without having to first settle the claim.

This type of clause is beneficial for the franchisee as it provides a clearer path to recovery of costs without the upfront burden of payment. It is important for prospective franchisees to understand the terms of the indemnification agreement, as it outlines the responsibilities and protections in case of claims or suits related to assigned or transferred rights.