Does Anago have to defend against claims related to the Collateral?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for all losses or damages from contractual liabilities to third persons from the possession, ownership and operation of the Anago Unit Franchise and for all claims and demands for damages to property or for injury, illness or death of persons directly or indirectly resulting from Your actions. You will indemnify Us from all costs, losses and damages (including reasonable attorneys' fees and costs, even if incident to appellate, post judgment or bankruptcy proceedings) from claims brought by third parties involving (a) Your ownership or operation of the Anago Unit Franchise or (b) from Your breach of this Agreement unless caused by Our gross negligence or intentional misconduct. You must also defend, indemnify and hold Us and AFI harmless from and against any claims asserting that AFI or We are the employer or joint or coemployer of You or Your employees. These indemnity obligations continue in full effect even after the expiration or termination of this Agreement. We will notify You of any claims and You will be given the opportunity to assume the defense of the matter. If You fail to assume the defense, We may defend the action in the manner We deem appropriate and You will pay to Us all costs, including attorneys' fees, We incur in effecting the defense, in addition to any sum that We pay by reason of any settlement or judgment against Us. Our right to indemnity under this Agreement arises and is valid regardless of any joint or concurrent liability that may be imposed on Us by statute, ordinance, regulation or other law.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the franchisee is responsible for all losses or damages from contractual liabilities to third persons from the possession, ownership, and operation of the Anago Unit Franchise. The franchisee is also responsible for all claims and demands for damages to property or for injury, illness, or death of persons directly or indirectly resulting from their actions.
The franchisee will indemnify Anago from all costs, losses, and damages (including reasonable attorneys' fees and costs, even if incident to appellate, post judgment or bankruptcy proceedings) from claims brought by third parties involving the franchisee's ownership or operation of the Anago Unit Franchise or from the franchisee's breach of the Franchise Agreement unless caused by Anago's gross negligence or intentional misconduct. The franchisee must also defend, indemnify, and hold Anago and AFI harmless from and against any claims asserting that AFI or Anago are the employer or joint or co-employer of the franchisee or the franchisee's employees.
These indemnity obligations continue even after the expiration or termination of the Franchise Agreement. Anago will notify the franchisee of any claims, and the franchisee will be given the opportunity to assume the defense of the matter. If the franchisee fails to assume the defense, Anago may defend the action in the manner it deems appropriate, and the franchisee will pay to Anago all costs, including attorneys' fees, incurred in effecting the defense, in addition to any sum that Anago pays by reason of any settlement or judgment against it. Anago's right to indemnity under this Agreement arises and is valid regardless of any joint or concurrent liability that may be imposed on Anago by statute, ordinance, regulation, or other law.