Does the franchisee's obligation to indemnify Aw continue after the termination of the Aw franchise agreement?

According to Aw's 2025 Franchise Disclosure Document, the franchisee's obligation to indemnify Aw extends beyond the termination or expiration of the franchise agreement. This means that even after the franchise relationship ends, the franchisee remains responsible for covering certain costs and liabilities that Aw may incur due to the franchisee's actions or breaches of the agreement.

Specifically, the franchisee's indemnification obligations remain in full force and effect even after the agreement expires or is terminated. This includes protecting Aw, its shareholders, directors, officers, employees, agents, and assignees from obligations, damages, and taxes for which Aw is held liable, as well as covering costs incurred in defending claims or actions arising from the franchisee's operation of the Papa Ray's Pizza Restaurant or any breach of the agreement. These costs can include actual and consequential damages, reasonable attorneys', accountants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses.

This continuing obligation is a significant consideration for prospective Aw franchisees. It means that even after ceasing operations, the franchisee could still face financial responsibility for past actions or failures to comply with the franchise agreement. Franchisees should carefully review the scope of the indemnification clause and understand the potential liabilities they could face, even after the franchise term ends.