Is the Checkers franchisee required to indemnify Checkers to the fullest extent permitted by law?

According to Checkers' 2025 Franchise Disclosure Document, the franchisee's obligation to indemnify Checkers for third-party claims is specifically mentioned as an exception to limitations on damages.

Specifically, Section 10.10 states that the limitations on damages do not apply to the franchisee's obligation to indemnify Checkers for third-party claims under Section 5.02, nor do they apply to confidential information as described in Section 6.01. This means that while Checkers and the franchisee waive rights to punitive or exemplary damages against each other to the fullest extent permitted by law, this waiver does not extend to the franchisee's duty to cover Checkers' losses from third-party claims.

Furthermore, the franchisee and their owners waive the right to recover consequential, special, and incidental damages for any claim related to the agreement, again "to the fullest extent permitted by applicable law." This indicates that Checkers aims to limit its liability for various types of damages, but the franchisee's indemnification obligations remain in place for third-party claims. Prospective franchisees should carefully review Sections 5.02 and 6.01 to fully understand the scope of their indemnification responsibilities and the nature of confidential information they must protect.