Does the indemnification obligation in the Cicis franchise agreement continue after the agreement's expiration or termination?

According to Cicis's 2025 Franchise Disclosure Document, the expiration or earlier termination of the franchise agreement does not release a franchisee from any liability or obligation that has already accrued. This also applies to any liability or obligation that continues beyond, or arises from, the expiration or termination of the agreement, or the exercise of rights under the agreement. This means that even after the franchise agreement ends, a franchisee may still be responsible for certain financial or legal obligations.

This provision ensures that Cicis can still hold franchisees accountable for actions or liabilities that occurred during the term of the agreement, or that continue to have an impact even after the agreement has ended. For example, if a franchisee caused damage to a property or violated a law during the franchise term, they could still be liable for those damages or violations even after the agreement is no longer in effect. Similarly, if the franchisee has ongoing obligations, such as payments due, those obligations remain even after termination.

For a prospective Cicis franchisee, this highlights the importance of understanding and complying with all terms of the franchise agreement. It also underscores the need to maintain adequate insurance coverage and to operate the franchise in a responsible and lawful manner. Franchisees should seek legal counsel to fully understand their obligations and potential liabilities, both during and after the franchise term. This clause is typical in franchise agreements to protect the franchisor from liabilities caused by the franchisee during the term of the agreement.