Is Buona Franchisor's right to indemnity affected by the imposition of joint or several liabilities?

According to Buona's 2025 Franchise Disclosure Document, Buona's right to indemnity is not affected even if joint or several liabilities are imposed upon them by a statute, ordinance, regulation, or judicial decision. This means that even if Buona is held jointly or severally liable with a franchisee or another party, the franchisee's obligation to indemnify Buona remains in effect. Indemnification generally requires the franchisee to protect Buona from losses, damages, and liabilities arising from the franchisee's operation of the business.

This provision protects Buona from potential liabilities that may arise from the franchisee's actions or business operations. For a prospective franchisee, this means that they could be responsible for covering Buona's losses, legal fees, and other expenses, even if Buona is also found liable. This could have significant financial implications for the franchisee, potentially requiring them to pay substantial sums to cover claims or judgments against Buona.

Franchisees should carefully consider this indemnification clause and understand the potential scope of their liability. It is advisable to consult with a legal professional to fully understand the implications of this clause and to assess the risks associated with operating a Buona franchise. Understanding the extent of indemnification obligations is a crucial part of evaluating the financial risks and responsibilities involved in becoming a Buona franchisee.