factual

Does the Checkersrallys agreement define what is meant by 'losses and expenses' in the indemnification clause?

Checkersrallys Franchise · 2025 FDD

Answer from 2025 FDD Document

The term "losses and expenses" includes compensatory, exemplary, and punitive damages; fines and penalties; attorneys' fees; experts' fees; court costs; costs associated with investigating and defending against claims; settlement amounts; judgments; compensation for damages to our reputation and goodwill; and all other costs associated with any of the foregoing losses and expenses.

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

What This Means (2025 FDD)

According to Checkersrallys's 2025 Franchise Disclosure Document, the franchise agreement does define what is meant by 'losses and expenses' within the indemnification clause. The agreement specifies that 'losses and expenses' includes a comprehensive list of potential financial burdens.

Specifically, the definition encompasses compensatory, exemplary, and punitive damages, offering a broad scope of liability. It also includes fines and penalties, which could arise from regulatory violations or non-compliance. Furthermore, the definition explicitly incorporates attorneys' fees, experts' fees, and court costs, which are often significant expenses in legal proceedings. Costs associated with investigating and defending against claims are also included, acknowledging the financial burden of dispute resolution. Settlement amounts and judgments are listed, clarifying that both negotiated resolutions and court-ordered payments fall under this definition.

Importantly, the definition extends to compensation for damages to Checkersrallys's reputation and goodwill, recognizing the intangible value at stake. Finally, the definition acts as a catch-all by including all other costs associated with any of the foregoing losses and expenses, ensuring that unforeseen financial burdens are also covered under the indemnification clause. This comprehensive definition provides clarity and breadth to the franchisee's indemnification obligations to Checkersrallys.

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.