What does the Checkersrallys franchisee agree to do regarding indemnification of the franchisor?

According to the 2025 Checkersrallys Franchise Disclosure Document, the franchisee has an obligation to indemnify Checkersrallys for third-party claims under Section 5.02 of the agreement. This means the franchisee agrees to protect Checkersrallys from losses, damages, or liabilities that arise from claims made by someone not a party to the franchise agreement.

However, this indemnification obligation is subject to certain limitations. The document states that both Checkersrallys and the franchisee waive any right to claim punitive or exemplary damages against each other, except for the franchisee's duty to indemnify Checkersrallys for third-party claims under Section 5.02 and concerning confidential information as described in Section 6.01. Additionally, the franchisee waives the right to recover consequential, special, and incidental damages for any claim related to the agreement, to the fullest extent permitted by applicable law.

This means that while the franchisee must indemnify Checkersrallys against third-party claims, there are limitations on the types of damages that can be claimed. Punitive damages, consequential damages, special damages, and incidental damages are generally waived by both parties. This clause aims to allocate specific risks and liabilities between Checkersrallys and its franchisees, potentially affecting the financial exposure of the franchisee in certain legal situations.