What damages are covered under the Indemnification fee for a Cicis franchise?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Amount of damages suffered | On demand | You must indemnify, defend, and hold us, our affiliates, and our and affiliates' respective owners, directors, managers, officers, employees, agents, successors, and assignees harmless against all third party claims arising from the development or operation of your Restaurant (or by your employees, or others that arise from your employment practices). |
Source: Item 6 — OTHER FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the indemnification fee covers the amount of damages suffered by Cicis, its affiliates, and their respective owners, directors, managers, officers, employees, agents, successors, and assignees. This fee is due on demand.
Specifically, Cicis franchisees must indemnify, defend, and hold harmless the aforementioned parties against all third-party claims. These claims must arise from the development or operation of the franchisee's Cicis restaurant. This also includes claims made by the franchisee's employees or others that arise from the franchisee's employment practices.
In practical terms, this means that if a customer sues Cicis due to an incident at a franchise location, or if an employee of a franchise brings a legal claim against Cicis, the franchisee may be responsible for covering the resulting damages and legal costs. This is a standard clause in most franchise agreements, designed to protect the franchisor from liabilities arising from the actions of individual franchisees. Franchisees should ensure they have adequate insurance coverage and maintain sound operational practices to mitigate these risks.