What does it mean to 'indemnify' Big Frog Custom T Shirts More?
Big_Frog_Custom_T_Shirts_More Franchise · 2024 FDDAnswer from 2024 FDD Document
TO THE FULLEST EXTENT PERMITTED BY LAW, FRANCHISEE AGREES TO EXONERATE AND INDEMNIFY AND HOLD HARMLESS BIG FROG CUSTOM T-SHIRTS, INC., AND ANY OF THEIR PARENT COMPANIES, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES, AS WELL AS THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, AND SHAREHOLDERS (COLLECTIVELY REFERRED TO AS THE "BIG FROG INDEMNITEES"), FROM ALL CLAIMS BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATED TO FRANCHISEE'S FRANCHISE AND/OR THE OPERATION THEREOF, INCLUDING BUT
NOT LIMITED TO, ANY CLAIM IN CONNECTION WITH FRANCHISEE'S EMPLOYEES OR AGENTS; FRANCHISEE'S COMPUTER SYSTEMS; THE FRANCHISED BUSINESS PREMISES; OR FRANCHISEE'S ADVERTISING OR BUSINESS PRACTICES. FRANCHISEE AGREES TO PAY FOR ALL THE BIG FROG INDEMNITEES' LOSSES, EXPENSES (INCLUDING, BUT NOT LIMITED TO ATTORNEYS' FEES) OR CONCURRENT OR CONTRIBUTING LIABILITY INCURRED IN CONNECTION WITH ANY ACTION, SUIT, PROCEEDING, INQUIRY (REGARDLESS OF WHETHER THE SAME IS REDUCED TO JUDGMENT OR DETERMINATION), OR ANY SETTLEMENT THEREOF FOR THE INDEMNIFICATION GRANTED BY FRANCHISEE HEREUNDER. THE BIG FROG INDEMNITEES SHALL HAVE THE RIGHT TO SELECT AND APPOINT INDEPENDENT COUNSEL TO REPRESENT ANY OF THE BIG FROG INDEMNITEES IN ANY ACTION OR PROCEEDING COVERED BY THIS INDEMNITY. FRANCHISEE AGREES THAT TO HOLD THE BIG FROG INDEMNITEES HARMLESS, FRANCHISEE WILL REIMBURSE THE BIG FROG INDEMNITEES AS THE COSTS AND EXPENSES ARE INCURRED BY THE BIG FROG INDEMNITEES.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2024 FDD)
According to Big Frog Custom T Shirts More's 2024 Franchise Disclosure Document, as a franchisee, you agree to indemnify Big Frog Custom T-Shirts, Inc. This means you will protect Big Frog Custom T Shirts More from claims and financial losses related to your franchise's operation. This obligation extends to Big Frog Custom T Shirts More, its parent companies, subsidiaries, affiliates, successors, assigns, designees, directors, officers, employees, agents, and shareholders.
More specifically, the claims covered by this indemnification include those arising from your franchise, your employees or agents, your computer systems, the franchised business premises, and your advertising or business practices. You are responsible for covering Big Frog Custom T Shirts More's losses and expenses, including attorney's fees, related to any action, suit, proceeding, or inquiry, regardless of whether it results in a judgment or settlement.
Big Frog Custom T Shirts More has the right to select its own legal counsel to represent them in any action covered by this indemnification. Furthermore, you must reimburse Big Frog Custom T Shirts More for costs and expenses as they incur them to ensure they are held harmless.
In essence, this clause shifts the financial burden of certain risks from Big Frog Custom T Shirts More to you, the franchisee. It is a broad obligation, so prospective franchisees should carefully consider the potential liabilities associated with operating a Big Frog Custom T Shirts More franchise and consult with a legal professional to fully understand the scope of this indemnification.