Does Auntie Annes's own insurance coverage limit or relieve a franchisee's indemnity obligations as stated in Section 13.1?

According to the 2024 Auntie Annes Franchise Disclosure Document, the standard franchise agreement requires franchisees to indemnify Auntie Annes. However, an addendum for franchises sold in Indiana modifies this obligation. Specifically, franchisees in Indiana are not required to indemnify affiliated parties for liability caused by their proper reliance on procedures or materials provided by Auntie Annes, or caused by Auntie Annes's own negligence. This addendum alters the standard indemnification clause to protect franchisees in Indiana from certain liabilities arising from reliance on the franchisor's guidance or the franchisor's own actions. This modification is specific to Indiana and does not apply to franchises in other states.

For a prospective Auntie Annes franchisee in Indiana, this addendum provides a degree of protection against being held liable for issues stemming directly from the franchisor's instructions or negligence. This could be a significant benefit, as it reduces the franchisee's risk exposure in situations where they are following Auntie Annes's prescribed methods or where Auntie Annes is at fault.

Franchisees outside of Indiana should be aware that the standard indemnification clause, as outlined in Section 13.1 of the Franchise Agreement, remains in effect. This means that franchisees in other states may have broader indemnity obligations compared to those in Indiana. It is important for all prospective franchisees to carefully review Section 13.1 and any applicable state-specific addenda to fully understand their potential liabilities and obligations.