Regarding Bojangles' DMA advertising, what losses, claims, or liabilities are the DMA members required to indemnify and hold harmless the franchisor from?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the Members of each DMA do hereby agree to indemnify and hold harmless Franchisor in respect to all losses, claims, or liabilities that may result from actions of such Member's DMA, including without limitation, the nonpayment of media sources (except no indemnity is intended as to any contributions which may be due from Franchisor as a DMA Member).
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, each member of a DMA (Designated Market Area) agrees to indemnify and hold harmless Bojangles from all losses, claims, or liabilities that may result from the actions of that DMA. This includes, but is not limited to, the nonpayment of media sources. However, this indemnification does not extend to any contributions that may be due from Bojangles as a DMA member.
In simpler terms, if the DMA takes actions that lead to financial losses, claims, or legal liabilities, the DMA members are responsible for protecting Bojangles from those consequences. A common example provided in the FDD is if the DMA fails to pay its media vendors, the DMA members would be responsible for covering those debts, thus indemnifying Bojangles.
This clause is designed to protect Bojangles from financial or legal issues arising from the DMA's activities. However, it's important to note the exception: if Bojangles itself owes contributions as a DMA member, the indemnity does not apply to those specific contributions. Prospective franchisees should carefully consider this indemnification clause and understand the potential financial responsibilities associated with DMA membership.