What is the franchisee's obligation regarding the defense of claims against Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees at all times to defend at their own cost, and to indemnify and hold harmless to the fullest extent permitted by law, Franchisor, its partners or any limited partner, its subsidiaries, and other entities owned by it, its affiliates (including without limitation all entities and persons owned by or owning, directly or indirectly, an interest in Franchisor, or its successors, assigns and designees of any such entity, officers, directors, employees, agents, contractors, and other entities and persons providing services for or otherwise acting on behalf of Franchisor (including, without limitation, Franchisor's affiliates in any capacity or role), and the respective directors, officers, employees, agents, shareholders, members, managers, partn
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the franchisee has a significant obligation to defend and indemnify Brueggers Bagels against claims. The franchisee is responsible for defending Brueggers Bagels, its partners, subsidiaries, affiliates, and their respective personnel (officers, directors, employees, agents, contractors) at the franchisee's own cost. This means the franchisee will bear the financial burden of legal defense.
In addition to defending, the franchisee must also indemnify and hold harmless the aforementioned parties to the fullest extent permitted by law. Indemnification means the franchisee will compensate Brueggers Bagels for any losses, damages, or expenses they incur as a result of claims related to the franchisee's operations. This obligation extends to entities and persons owning an interest in Brueggers Bagels, as well as those providing services on their behalf.
This requirement is a standard practice in franchising, designed to protect the franchisor from liabilities arising from the franchisee's business. However, it places a considerable financial risk on the franchisee, who could be responsible for substantial legal costs and damages depending on the nature and outcome of any claims. Prospective franchisees should carefully consider this obligation and consult with legal counsel to understand the full scope of their potential liability.