What costs are included in the indemnification that a Carbones Pizzeria franchisee must provide to the franchisor?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall indemnify Franchisor against, and reimburse Franchisor for, all obligations and damages for which Franchisor is liable and for all costs reasonably incurred by Franchisor in the defense of any such claim brought against it, or in any such action in which it is named as a party, arising out of any act or omission of Franchisee, its personnel or contractors, or as a result of any activities occurring at, by, or through Franchisee's business, including the Restaurant, its operation, design, or construction, or otherwise, the sale of the Restaurant, the provision of any products or services, the hiring of any employees, and any advertising conducted by Franchisee. Such indemnification shall include reasonable attorneys' fees, costs of investigation or proof of facts, court costs, other litigation expenses, and travel and living expenses.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, the franchisee is required to indemnify Carbones Pizzeria against various financial obligations and damages. This includes covering all obligations and damages for which Carbones Pizzeria is held liable due to any action or failure to act by the franchisee, their personnel, or contractors. It also extends to activities occurring at or through the franchisee's business, encompassing the restaurant's operation, design, construction, the sale of the restaurant, the provision of products or services, employee hiring, and any advertising conducted by the franchisee.
The indemnification extends to all costs reasonably incurred by Carbones Pizzeria in defending against any claim brought against it or in any action where it is named as a party. This includes, but is not limited to, reasonable attorneys' fees, costs associated with investigating or proving facts, court costs, other litigation expenses, and travel and living expenses.
This means that if a Carbones Pizzeria franchisee's actions lead to a lawsuit or claim against the franchisor, the franchisee is responsible for covering all associated costs, including legal fees and damages. This is a standard clause in most franchise agreements, designed to protect the franchisor from liabilities arising from the franchisee's operations. Prospective franchisees should carefully consider this obligation and ensure they have adequate insurance coverage and risk management practices in place.