factual

What does the Browns Chicken franchisee agree to in the indemnification agreement?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee will, and hereby does, indemnify and defend Brown and its Affiliates and their respective officers, directors, owners, agents, representatives, employees, successors and assigns, from and against all losses, costs, liabilities, damages, claims, and expenses of every kind, including allegations of negligence by Brown and its Affiliates and their officers, employees, and agents, to the fullest extent permitted by Applicable Law, and including reasonable attorneys' fees, arising out of, resulting from or related to: (i) the unauthorized use of the Trademarks; (ii) the violation of Applicable Law; and (iii) the construction, renovation, upgrading, alteration, remodeling, repair, operation, ownership and use of the BROWN Store. Franchisee must promptly give notice to Brown of any action, suit, proceeding, claim, demand, inquiry, or investigation related to the foregoing. Brown will have the right, through counsel of its choice, at Franchisee's expense, to control the defense and response to any such action, and such undertaking by Brown will not, in any manner, diminish Franchisee's obligations to Brown. Under no circumstances will Brown or a person indemnified be required to seek recovery from third parties or mitigate its losses in order to maintain a claim for indemnification against Franchisee under this Agreement, and the failure to pursue such recovery or mitigate a loss will in no way reduce the amounts recoverable from Franchisee by a person indemnified. Franchisee's obligations under this Section will survive the termination or expiration of this Agreement.

Brown agrees to indemnify Franchisee against and to reimburse Franchisee for any obligations or liability for damages attributable to agreements, representations or warranties of Brown (except such agreements as Brown shall make on behalf of Franchisee in developing the Store, if any), or caused by the negligence or willful action of Brown, and for costs (as hereinabove defined) reasonably incurred by Franchisee in the defense of any such claim brought against it or in any action in which Franchisee is named as a party, provided that Brown shall have the right to participate in and, to the extent Brown deems necessary, to control, any litigation or proceeding which might result in liability of or expense to Franchisee subject to such indemnification. Brown's indemnification shall not apply in the event Franchisee contributed to the harm.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, the franchisee agrees to indemnify and defend Browns Chicken, its affiliates, and their respective personnel against all losses, costs, liabilities, damages, claims, and expenses. This includes allegations of negligence by Browns Chicken and its affiliates, to the fullest extent permitted by law, and includes reasonable attorneys' fees. This obligation arises from or relates to (i) the unauthorized use of the trademarks, (ii) the violation of applicable law, and (iii) the construction, renovation, upgrading, alteration, remodeling, repair, operation, ownership, and use of the Browns Chicken store.

The franchisee must promptly notify Browns Chicken of any related action, suit, proceeding, claim, demand, inquiry, or investigation. Browns Chicken has the right, through counsel of its choice, at the franchisee's expense, to control the defense and response to any such action. Browns Chicken is not required to seek recovery from third parties or mitigate its losses to maintain a claim for indemnification against the franchisee, and failure to do so will not reduce the amounts recoverable from the franchisee. The franchisee's obligations under this section survive the termination or expiration of the agreement.

Browns Chicken, in turn, agrees to indemnify the franchisee against any obligations or liability for damages attributable to agreements, representations, or warranties of Browns Chicken (except agreements made on behalf of the franchisee in developing the store) or caused by the negligence or willful action of Browns Chicken. This also covers costs reasonably incurred by the franchisee in defending against any such claim or action in which the franchisee is named as a party. Browns Chicken has the right to participate in and control any litigation or proceeding that might result in liability or expense to the franchisee, subject to such indemnification. However, Browns Chicken's indemnification does not apply if the franchisee contributed to the harm.

Disclaimer: This information is extracted from the 2025 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.