Does the Bananas Smoothies Frozen Yogurt indemnification obligation continue after the termination of the Agreement?

According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the franchisee's obligation to indemnify the franchisor continues even after the franchise agreement expires or is terminated. This means that even after a franchisee is no longer operating a Bananas Smoothies Frozen Yogurt location, they may still be responsible for covering costs and damages related to their past operation of the business.

The franchisee is responsible for protecting Bananas Smoothies Frozen Yogurt, its affiliates, and their respective shareholders, members, directors, officers, employees, agents, successors, and assigns from any claims, liabilities, damages, or taxes that arise either directly or indirectly from the development or operation of the Restaurant. The only exception to this is liabilities caused solely by Bananas Smoothies Frozen Yogurt's own gross negligence or willful action and all other liabilities arising from labor and employment law violations or liability for acts or omissions of Franchisee's employees.

Bananas Smoothies Frozen Yogurt has the right to manage the defense or settlement of any claim without the franchisee's permission. The franchisee is responsible for covering all reasonable costs related to the defense or settlement, including legal fees, even those incurred by in-house counsel. Franchisees should be aware that this obligation extends indefinitely, even after the franchise agreement has ended, which could have long-term financial implications.