What costs and expenses are Angry Chickz franchisees required to indemnify the Company against?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
16.2 Indemnity. Franchisee shall protect, defend and indemnify Company, and all of its past, present and future Owners, Affiliates, officers, directors, employees, attorneys and designees, and each of them, and hold them harmless from and against any and all costs and expenses, including attorneys' fees, court costs, losses, liabilities, damages, claims and demands of every kind or nature on account of any actual or alleged loss, injury or damage to any person or Entity or to any property (including data loss or damage) arising out of or in connection with (i) any breach of this Agreement by Franchisee, any Restricted Person; (ii) Franchisee's development, construction (including latent or patent defects), operation, maintenance of the Franchised Business, the Premises, any real property occupied by the Franchised Business, or the conduct to Franchisee's business; (iii) Franchisee's operation, marketing, advertising, promotion, offer for sale, sale, or provision of any products or services; (iv) any and all alleged torts, negligent acts, breaches of contract, fraud, omissions by Franchisee or its agents, representatives, contractors, or employees; and (v) the alleged failure of Franchisee to comply with Applicable Law. Company shall give Franchisee written notice of any claim for which Company demands indemnity; provided that such obligation shall not constitute a condition to Franchisee's indemnification obligation. Company shall retain the right and power to direct, manage, control and settle the litigation of any claim. Any payments made to an indemnified party shall be net of benefits received by any indemnified party on account of insurance in respect of such claims.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, franchisees must protect, defend, and indemnify Angry Chickz from various costs and expenses. This includes attorneys' fees, court costs, losses, liabilities, damages, claims, and demands related to actual or alleged losses, injuries, or damages to any person, entity, or property. This broad indemnification extends to data loss or damage as well.
The franchisee's indemnification obligations arise from several specific scenarios. These include any breach of the Franchise Agreement by the franchisee or any restricted person, the franchisee's development, construction (including latent or patent defects), operation, and maintenance of the franchised business, the premises, or any real property occupied by the business. It also covers the franchisee's operation, marketing, advertising, promotion, sale, or provision of any products or services.
Furthermore, Angry Chickz franchisees are responsible for indemnifying the company against alleged torts, negligent acts, breaches of contract, fraud, or omissions by the franchisee or their agents, representatives, contractors, or employees. This also includes any alleged failure by the franchisee to comply with applicable laws. Angry Chickz will provide written notice of any claim for which it demands indemnification, but this notice is not a condition of the franchisee's indemnification obligation. Angry Chickz retains the right to direct, manage, control, and settle any litigation related to the claim, and any payments made to an indemnified party will be net of insurance benefits received.