Under what circumstances is an Apricot Lane franchisee NOT required to indemnify the franchisor?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall procure and maintain in accordance with Section 10 such insurance policies in connection with the E-Commerce Platform as Franchisor may require from time to time and shall indemnify Franchisor, in accordance with Section 21C, for any liabilities, obligations and expenses incurred by Franchisor in connection with the E-Commerce Platform, including any liability, obligation or expense arising under the Provider Contracts.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
Based on the 2025 Apricot Lane Franchise Disclosure Document, the franchisee is required to indemnify the franchisor for liabilities, obligations, and expenses incurred by the franchisor related to the E-Commerce Platform. This includes any liability, obligation, or expense arising under the Provider Contracts.
The FDD excerpt specifies that the franchisee "shall indemnify Franchisor, in accordance with Section 21C, for any liabilities, obligations and expenses incurred by Franchisor in connection with the E-Commerce Platform, including any liability, obligation or expense arising under the Provider Contracts." However, the excerpt does not provide details on circumstances where the franchisee is NOT required to indemnify the franchisor.
To fully understand the scope of the indemnification obligations and any exceptions, a prospective Apricot Lane franchisee should review Section 21C of the Franchise Agreement, as referenced in Item 23. Additionally, they should seek clarification from the franchisor regarding specific scenarios where indemnification may not be required. This will help in assessing the potential financial risks associated with the E-Commerce Platform and the overall franchise agreement.