What are the required actions a franchisee must take to be eligible for indemnification from Anago regarding the use of Proprietary Property?
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)
Based on the 2025 FDD, Anago franchisees are responsible for losses or damages arising from contractual liabilities to third parties and claims related to property damage, injury, illness, or death resulting from their actions. Franchisees must indemnify Anago from costs, losses, and damages, including attorney's fees, related to claims by third parties due to the franchisee's ownership or operation of the Anago Unit Franchise, or from the franchisee's breach of the agreement, unless such claims are caused by Anago's gross negligence or intentional misconduct. This indemnification obligation remains in effect even after the termination or expiration of the franchise agreement.
Anago will notify the franchisee of any claims, providing an opportunity for the franchisee to assume the defense of the matter. If the franchisee fails to do so, Anago may defend the action as it deems appropriate, and the franchisee will be responsible for all costs, including attorney's fees, incurred by Anago in defending the claim, as well as any amounts Anago pays due to settlement or judgment. Anago's right to indemnity is valid regardless of any joint or concurrent liability imposed on Anago by law.
In practical terms, this means that as an Anago franchisee, you bear significant responsibility for any liabilities arising from your business operations. You are expected to cover legal costs and damages resulting from claims related to your franchise, protecting Anago from financial burdens associated with your business conduct. It is important to operate the franchise in compliance with the franchise agreement and all applicable laws to minimize the risk of claims and potential liabilities. Franchisees should also maintain adequate insurance coverage to protect against potential losses and damages.