factual

Who are the 'Franchisee Indemnified Parties' that Bang Cookies will protect?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisor shall indemnify, defend, and hold Franchisee and Franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns and successors (the "Franchisee Indemnified Parties") harmless from all losses, expenses, claims, causes of action, lawsuits, liabilities, taxes, costs, demands, proceedings, investigation, hearing, and/or damages solely arising out of, or solely relating to, Franchisor's gross negligence in the operation of Franchisee's Bang Cookies Shop that was the direct cause of any such loss, expense, liability or damage provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing, and Franchisor shall pay all of the Franchisee Indemnified Parties' reasonable costs, fees and expenses of defending any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing brought against any of the Franchisee Indemnified Parties or any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing in which any of the Franchisee Indemnified Parties is named as a party, including, without limitation, reasonable accountant fees, attorney fees, and expert witness fees, court costs, deposition fees, travel expenses and other litigation expenses provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing. Franchisor agrees that the terms of this Article 10.C. shall survive the termination, expiration or Transfer of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, the 'Franchisee Indemnified Parties' are specifically defined as the franchisee and the franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns, and successors. This means that Bang Cookies, under certain conditions, will defend and protect these individuals and entities from losses, expenses, claims, and liabilities.

The scope of this indemnification is limited to situations arising solely from Bang Cookies's gross negligence in the operation of the franchisee's Bang Cookies shop. For the franchisee to be protected, they must immediately notify Bang Cookies of any claim, lawsuit, or proceeding. This immediate notification is a critical condition for Bang Cookies's obligation to defend and indemnify.

Bang Cookies will cover the reasonable costs, fees, and expenses of defending any claim or lawsuit brought against the Franchisee Indemnified Parties, including accountant fees, attorney fees, expert witness fees, court costs, deposition fees, travel expenses, and other litigation expenses. This protection extends to any legal actions where the Franchisee Indemnified Parties are named as a party. This indemnification agreement survives the termination, expiration, or transfer of the franchise agreement, providing continued protection even after the franchise relationship ends.

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.