factual

Does the indemnification clause in the Aunt Millies Bakeries agreement include coverage for expert fees?

Aunt_Millies_Bakeries Franchise · 2025 FDD

Answer from 2025 FDD Document

  • §12.5 INDEMNIFICATION: Each party hereby agrees to defend, indemnify and hold the other harmless against a third party as to any costs, charges or claims including, without limitation, reasonable attorneys' fees, expert fees and costs of settlement, which may arise out of such party's direct or indirect failure to perform any obligation and/or discharge any liability arising under this Agreement or arising out of such party's negligence.

Source: Item 23 — RECEIPT (FDD pages 44–196)

What This Means (2025 FDD)

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the indemnification clause does include coverage for expert fees. Specifically, Section 12.5 of the Distribution Agreement outlines the indemnification responsibilities of each party. This section states that each party agrees to defend, indemnify, and hold the other harmless against third-party claims.

This indemnification extends to any costs, charges, or claims arising from a party's failure to perform their obligations or from their negligence. Crucially, the coverage explicitly includes reasonable attorneys' fees, expert fees, and costs of settlement. This means that if a franchisee of Aunt Millies Bakeries is subject to a claim due to the franchisor's actions or negligence, Aunt Millies Bakeries would be responsible for covering not only legal fees and settlement costs but also the fees for any expert witnesses or consultants required to defend the claim.

For a prospective Aunt Millies Bakeries franchisee, this is a significant protection. It ensures that they will not have to bear the financial burden of expert fees if a claim arises due to the franchisor's actions or failures. However, it is important to note that this indemnification applies to claims made by third parties, not disputes directly between the franchisee and Aunt Millies Bakeries. Franchisees should carefully review the entire agreement to understand the full scope of their rights and responsibilities regarding indemnification.

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.