Is Chatime indemnified for any injury to, or loss of property of, any person in or on premises from which the business is conducted?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisee Parties indemnify Franchisor and each of its Affiliates (Chatime Group) against all:
- (a) Losses incurred by the Chatime Group;
- (b) Liabilities incurred by the Chatime Group; and
- (c) All Legal Costs and other Costs and expenses incurred by the Chatime Group in connection with a demand, action, arbitration, or other proceeding (including mediation, compromise, out of court settlement or appeal),
arising directly or indirectly as a result of or in connection with:
- (e) Any injury to, or loss of property of, any person in or on premises from which the business is conducted;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisee is required to indemnify Chatime against losses, liabilities, and legal costs arising from certain events. Specifically, the franchisee must indemnify Chatime for any injury to, or loss of property of, any person in or on the premises from which the Chatime business is conducted. This means that if a customer or any other person is injured or their property is lost or damaged at the Chatime location, the franchisee is responsible for covering Chatime's losses, liabilities, and legal costs associated with the incident.
This indemnification extends to any losses, liabilities, and costs incurred by the Chatime Group, which includes Chatime and its affiliates. The franchisee's responsibility arises directly or indirectly from such incidents occurring at the premises. This obligation is part of a broader indemnity clause that also covers breaches of the franchise agreement, the franchisee's taxes, negligent acts or omissions, and any inaccurate or misleading warranties made by the franchisee.
This clause places a significant financial responsibility on the Chatime franchisee. It is common in franchise agreements for franchisees to carry insurance to cover such risks. Prospective franchisees should carefully review their insurance coverage to ensure they are adequately protected against potential claims related to injuries or property loss on the premises. Understanding the scope of this indemnity is crucial for managing the financial risks associated with operating a Chatime franchise.