Does a Bft Indemnitee's failure to mitigate losses affect their ability to recover fully from the franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Indemnitees need not seek recovery from any insurer or other third-party, or otherwise mitigate its losses and expenses, in order to maintain and recover fully a claim against Franchisee under this Section. Any Indemnitee's failure to pursue a recovery or mitigate a loss will not reduce or alter the amounts that person may recover from Franchisee under this Section.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, an Indemnitee's failure to mitigate losses does not impact their ability to recover fully from the franchisee. The franchise agreement specifies that Indemnitees are not required to seek recovery from insurers or other third parties, or otherwise mitigate losses, to maintain and fully recover a claim against the franchisee.
This means that even if an Indemnitee could have reduced their losses by taking certain actions, their failure to do so will not diminish their right to recover the full amount of the loss from the franchisee under the indemnification provisions of the franchise agreement. This clause protects Bft and its related parties by ensuring they can pursue claims against franchisees without the burden of proving they took all possible steps to minimize the damages.
For a prospective Bft franchisee, this clause highlights a significant financial responsibility. The franchisee is liable for a wide range of potential claims against Bft, even if Bft could have taken steps to reduce those claims. It is crucial for franchisees to understand the scope of this indemnification and to secure adequate insurance coverage to protect themselves against potential liabilities. Franchisees should also seek legal counsel to fully understand their obligations under this section of the franchise agreement.