Under what circumstances is the tenant NOT indemnified by the landlord regarding hazardous substances at a Cicis location?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord agrees to indemnify and hold harmless the Tenant from any and all claims, damages, fines, judgments, penalties, causes of action, liabilities or losses (including, without limitation, any and all sums paid for settlement of claims, attorneys fees, consultant and expert fees) arising during or after the Lease Term from or in connection with the presence, suspected presence, use, generation, storage, release or disposal of hazardous substances (whether caused by Landlord or by any prior owner or operator of the Premises or the Shopping Center) unless the hazardous substances are present solely as the result of negligence, willful misconduct or other acts of Tenant.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the landlord is not required to indemnify the tenant (franchisee) from claims, damages, fines, judgments, penalties, causes of action, liabilities, or losses related to hazardous substances if those substances are present solely due to the negligence, willful misconduct, or other acts of the tenant. This means that if a Cicis franchisee's own actions lead to the presence, release, or mishandling of hazardous materials at the premises, they will be responsible for any resulting costs or liabilities.
This exception to the landlord's indemnification is a significant point for prospective Cicis franchisees. It highlights the importance of proper operational procedures and compliance with environmental regulations. Franchisees must ensure their staff is well-trained in handling any potentially hazardous materials used in the restaurant and that all waste disposal practices adhere to local and federal guidelines.
The indemnification clause generally protects the franchisee from issues caused by the landlord or previous owners, but this exception places the onus on the franchisee to maintain responsible practices. Failing to do so could expose the franchisee to substantial financial risks, including legal fees, cleanup costs, and potential penalties. Therefore, understanding and adhering to these stipulations is crucial for any Cicis franchisee to avoid potential liabilities related to hazardous substances.