Does the Aplus franchisor or other Indemnified Parties have to attempt to mitigate losses before making a claim for indemnification?

According to Aplus's 2024 Franchise Disclosure Document, Aplus and other Indemnified Parties do not have to seek recovery from third parties or otherwise attempt to mitigate losses to maintain a claim to indemnification. Additionally, under no circumstances is Aplus required or obligated to seek coverage from third parties or otherwise mitigate losses in order to maintain a claim against the franchisee. The failure to pursue such remedy or mitigate such loss will in no way reduce the amounts recoverable by Aplus from the franchisee.

This means that if Aplus incurs losses due to the franchisee's actions or omissions, Aplus can seek indemnification from the franchisee without first trying to recover those losses from other sources like insurance companies or other liable parties. This places the full burden of the loss directly on the franchisee, regardless of whether Aplus could have reduced the loss by pursuing other avenues of recovery.

For a prospective Aplus franchisee, this highlights a significant financial risk. The franchisee could be responsible for covering the full amount of Aplus's losses, even if those losses could have been partially or fully mitigated through other means. It is crucial for franchisees to understand the scope of their indemnification obligations and to secure adequate insurance coverage to protect themselves against potential claims. Franchisees should also ensure they operate their business in a way that minimizes the risk of causing losses that could lead to indemnification claims.