factual

Does the Checkers franchise agreement require the franchisee to indemnify for claims arising from a third party against any one or more of the indemnitees?

Checkers Franchise · 2025 FDD

Answer from 2025 FDD Document

uch forms, business cards, stationery, advertising and other materials as we require at any time and from time to time.

You may not make any express or implied agreements, warranties, guarantees or representations or incur any debt in our name or on our behalf or represent that the

relationship of the parties hereto is anything other than that of independent contractors. We will not be obligated by or have any liability under any agreements made by you with any third party or for any representations made by you to any third party. We will not be obligated for any damages to any person or property arising directly or indirectly out of the operation of your business hereunder.

5.02 Indemnification. You agree to indemnify us, our Affiliates and our respective directors, officers, employees, shareholders, members, agents, successors and assigns (collectively "indemnitees"), and to hold the indemnitees harmless to the fullest extent permitted by law, from any and all losses and expenses (as defined below) incurred in connection with any litigation or other form of adjudicatory procedure, claim, demand, investigation, or formal or informal inquiry (regardless of whether it is reduced to judgment) or any settlement thereof which arises directly or indirectly from, or as a result of, a claim of a third party against any one or more of the indemnitees in connection with (i) your failure to perform or breach of any covenant, agreement, term or provision of this Agreement, (ii) your breach of any representation or warranty contained in this Agreement, and (iii) any allegedly unauthorized service or act rendered or performed in connection with this Agreement, (collectively "event") and regardless of whether it resulted from any strict or vicarious liability imposed by law on the indemnitees. The foregoing indemnity shall apply even if it is determined that the indemnitees' negligence caused such loss, liability or expense, in whole or in part, provided, however, that this indemnity will not apply to any liability arising from a breach of this Agreement by the indemnitees or the gross negligence or willful acts of indemnitees (except to the extent that joint liability is involved, in which event the indemnification provided herein will extend to any finding of comparative or contributory negligence attributable to you). The term "losses and expenses" includes compensatory, exemplary, and punitive damages; fines and penalties; attorneys' fees;

Source: Item 23 — RECEIPTS (FDD pages 92–384)

What This Means (2025 FDD)

According to Checkers' 2025 Franchise Disclosure Document, the franchise agreement requires franchisees to indemnify Checkers and its affiliates. Specifically, franchisees must indemnify Checkers, its affiliates, and their respective directors, officers, employees, shareholders, members, agents, successors, and assigns (collectively "indemnitees") from losses and expenses connected to claims by a third party against one or more of the indemnitees. This indemnification covers situations arising directly or indirectly from a third-party claim related to the franchisee's failure to perform the agreement, breach of any representation or warranty, or any allegedly unauthorized service or act.

The indemnity extends to losses, liabilities, or expenses caused by the indemnitees' negligence, but it does not apply to liability arising from a breach of the agreement by the indemnitees or the gross negligence or willful acts of the indemnitees, unless joint liability is involved. In cases of joint liability, the indemnification will extend to any finding of comparative or contributory negligence attributable to the franchisee.

Furthermore, the Checkers franchise agreement states that the franchisee's obligation to indemnify Checkers for third-party claims under Section 5.02 is an exception to the limitations on damages. This means that while both Checkers and the franchisee waive the right to punitive or exemplary damages against each other, the franchisee remains responsible for indemnifying Checkers against third-party claims as described in the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.