Does the Cicis indemnification clause cover claims arising from the franchisee's employment practices?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to indemnify, defend, and hold harmless us, our affiliates, and our and their respective owners, managers, directors, officers, employees, agents, successors, and assignees (the "Indemnified Parties") against, and to reimburse any one or more of the Indemnified Parties for, all claims, obligations, and damages directly or indirectly arising out of: (i) the operation of the business you conduct under this Agreement, (ii) your breach of this Agreement, including, without limitation, those alleged to be caused by the Indemnified Party's negligence, and/or (iii) instituted by your employees, or by others that arise from your employment practices, unless (and then only
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the franchisee's indemnification obligations extend to claims arising from their employment practices. Specifically, Cicis requires franchisees to indemnify, defend, and hold harmless Cicis and its affiliates against claims, obligations, and damages that directly or indirectly arise out of the franchisee's business operations. This includes claims instituted by the franchisee's employees or others that arise from the franchisee's employment practices.
This means that if a Cicis franchisee faces a lawsuit or claim from an employee related to employment practices (such as wrongful termination, discrimination, or wage disputes), the franchisee is responsible for defending Cicis and covering any resulting costs, damages, or settlements. This obligation exists even if the claim alleges negligence on the part of Cicis.
However, the indemnification is not absolute. The franchisee is only responsible for indemnification to the extent the claims arise from their employment practices. This clause highlights the importance of franchisees maintaining sound employment policies and practices to minimize the risk of such claims. Franchisees should consult with legal counsel to ensure they understand their obligations and liabilities under the indemnification clause and to implement best practices in their employment procedures.