Does the indemnity clause restrict the Bevaris Alliance Franchisor's obligation to mitigate a loss?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, the indemnity clause does not restrict or limit Bevaris Alliance's general obligation at law to mitigate a loss it may suffer or incur as a result of an event that may give rise to a claim under the indemnity. This means that even if the franchisee is obligated to indemnify Bevaris Alliance for certain liabilities, costs, expenses, damages, and losses, Bevaris Alliance still has a legal responsibility to take reasonable steps to minimize any losses they might experience.

This provision protects the franchisee by ensuring that Bevaris Alliance cannot simply allow losses to accumulate without taking action to reduce them, and then seek full indemnification from the franchisee. It aligns with the general legal principle that parties have a duty to mitigate damages in the event of a breach or other event that could lead to a claim.

For a prospective Bevaris Alliance franchisee, this is a favorable term in the franchise agreement. It provides some assurance that Bevaris Alliance will act responsibly to control losses, rather than relying solely on the indemnity from the franchisee. This could potentially reduce the financial burden on the franchisee in the event of a claim where the franchisee is required to provide indemnification.