Which sections of the Christian Brothers Automotive Franchise Agreement outline indemnification obligations?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
10.06 Indemnification. Franchisee must defend, indemnify, and hold harmless Franchisor and its affiliates, and their successors and assigns, and each of their respective direct and indirect owners, directors, officers, managers, employees, agents, attorneys, and representatives (collectively, the "Indemnified Parties"), from and against all Losses (defined below) which any of the Indemnified Parties may suffer, sustain, or incur as a result of a claim asserted or threatened or inquiry made formally or informally, or a legal action, investigation, or other proceeding brought, by a third party and directly or indirectly arising out of the Franchised Business's operation, Franchisee's conduct of business under this Agreement, Franchisee's breach of this Agreement, or Franchisee's noncompliance or alleged noncompliance with any law, ordinance, rule, or regulation, including any allegation that Franchisor or another Indemnified Party is a joint employer or otherwise responsible for Franchisee's acts or omissions relating to Franchisee's
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 37–39)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Section 10.06 of the Franchise Agreement outlines the franchisee's indemnification obligations. This section stipulates that the franchisee must defend, indemnify, and hold harmless Christian Brothers Automotive, its affiliates, and their respective owners, directors, officers, managers, employees, agents, attorneys, and representatives (referred to as the "Indemnified Parties").
This indemnification extends to all losses that any of the Indemnified Parties may suffer or incur due to claims, threats, inquiries, legal actions, investigations, or other proceedings brought by a third party. These claims must directly or indirectly arise from the operation of the franchised business, the franchisee's conduct under the Franchise Agreement, any breach of the agreement by the franchisee, or any noncompliance or alleged noncompliance with laws, ordinances, rules, or regulations. This includes allegations that Christian Brothers Automotive or another Indemnified Party is a joint employer or is otherwise responsible for the franchisee's actions.
In practical terms, this means that a Christian Brothers Automotive franchisee could be financially responsible for legal and other costs incurred by the franchisor due to the franchisee's business operations or failure to comply with applicable laws and the Franchise Agreement. This could include a wide range of issues, from customer lawsuits to employee claims or regulatory fines. Franchisees should carefully review Section 10.06 to fully understand the scope of their indemnification obligations and consult with legal counsel to assess the potential risks.