factual

Under what circumstances is an Anago franchisee required to indemnify Anago from claims brought by third parties?

Anago Franchise · 2025 FDD

Answer 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, Anago franchisees are responsible for losses or damages resulting from contractual liabilities to third parties related to the operation of their Anago Unit Franchise. This includes claims and demands for property damage, injury, illness, or death resulting from the franchisee's actions.

Specifically, Anago franchisees must indemnify Anago from all costs, losses, and damages, including reasonable attorney's fees, arising from claims brought by third parties. This indemnification requirement applies to claims involving the franchisee's ownership or operation of the Anago Unit Franchise, or from the franchisee's breach of the Franchise Agreement. However, the franchisee is not required to indemnify Anago if the claim is caused by Anago's gross negligence or intentional misconduct.

The franchisee must also defend, indemnify, and hold Anago and AFI harmless from claims asserting that Anago or AFI is the employer or joint employer of the franchisee or the franchisee's employees. This obligation to indemnify Anago continues even after the termination or expiration of the Franchise Agreement. Anago will notify the franchisee of any claims, and the franchisee has the opportunity to assume the defense of the matter. If the franchisee fails to do so, Anago may defend the action and recover all costs, including attorney's fees, from the franchisee, in addition to any settlement or judgment amounts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.