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For Auntie Annes franchises in Indiana, under what circumstances are franchisees NOT required to indemnify Affiliated Parties, according to the Indiana addendum?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

Notwithstanding the terms of Section 13.1 (Indemnification) of the Franchise Agreement, you will not be required to indemnify the Affiliated Parties for any liability caused by your proper reliance on or use of procedures or materials provided by us or caused by our negligence.

Source: Item 22 — CONTRACTS (FDD page 106)

What This Means (2024 FDD)

According to Auntie Annes's 2024 Franchise Disclosure Document, specifically the Indiana addendum, there are certain protections for franchisees regarding indemnification. Indemnification generally means that a franchisee agrees to protect the franchisor (and related parties) from losses or liabilities arising from the franchisee's business operations.

For Auntie Annes franchisees in Indiana, the addendum states that franchisees are not required to indemnify the Affiliated Parties under two specific circumstances. The first is for any liability caused by the franchisee's proper reliance on procedures or materials provided by Auntie Annes. This means if the franchisee follows the franchisor's instructions and incurs liability as a result, the franchisee is protected. The second is for liability caused by Auntie Annes's own negligence.

This provision offers a degree of protection to Indiana Auntie Annes franchisees, ensuring they are not held responsible for issues arising from the franchisor's actions or approved methods. It is important for prospective franchisees to understand the scope of indemnification clauses and how state-specific addenda can modify these terms in their favor.

Disclaimer: This information is extracted from the 2024 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.