Does the indemnity section of the Chick Fil A agreement convey any benefits to third parties?

According to Chick Fil A's 2025 Franchise Disclosure Document, the indemnity section of the agreement is not intended to benefit third parties. Specifically, the franchise agreement states that the indemnity provisions do not convey benefits to any third party. However, this does not prevent the Chick Fil A operator from seeking indemnification from another third party if that third party's actions (or the actions of their employees) caused the injury, damage, or loss.

This means that while the indemnity agreement primarily protects Chick Fil A from liabilities caused by the operator's actions, it does not create any rights or benefits for other entities. However, the operator retains the right to pursue claims against other parties who may be responsible for damages or losses. This ensures that the operator is not prevented from recovering losses caused by third parties, even though those third parties are not direct beneficiaries of the Chick Fil A's indemnity agreement.

For a prospective Chick Fil A franchisee, this clause clarifies that they cannot rely on the indemnity section to protect third parties. The franchisee should understand that while they are responsible for indemnifying Chick Fil A, they also have the right to seek indemnification from other parties who may be at fault for any losses or damages. This is a fairly standard provision in franchise agreements, as it clarifies the scope of the indemnity obligations and ensures that all parties retain their rights to pursue claims against those directly responsible for any harm.