When is indemnification due to Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Indemnification | Will vary under circumstances. | On Demand. | As Incurred; See Note 4. |
|---|
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, indemnification costs are due 'On Demand.' The amount of indemnification will vary based on the circumstances. These costs are incurred by Burros Fries and payable to them.
Note 4 in Item 6 of the Burros Fries FDD states that the franchisee must protect, defend, indemnify, and hold Burros Fries harmless against any claims, lawsuits, or losses arising out of the operation of the franchised business. If the franchisee defaults under the agreement and Burros Fries engages an attorney for collection or enforcement, the franchisee must pay all damages, legal fees, and costs to the extent permitted by law.
This means that as a Burros Fries franchisee, you are responsible for covering any costs Burros Fries incurs due to your business operations, including legal fees and damages from lawsuits. This is a common clause in franchise agreements, designed to protect the franchisor from liabilities caused by the franchisee's actions. It is important to understand the scope of this indemnification and to operate your Burros Fries franchise in a way that minimizes the risk of claims or lawsuits.