Does the indemnification obligation of a Cilantro Taco Grill franchisee include attorneys' fees?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
You must indemnify and hold us, our affiliates, and all of our respective officers, directors, agents and employees harmless from and against any and all claims, losses, costs, expenses, liability and damages arising directly or indirectly from, as a result of, or in connection with your business operations under the Franchise Agreement, as well as the costs, including attorneys' fees, of defending against them.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Cilantro Taco Grill's 2024 Franchise Disclosure Document, the franchisee's indemnification obligations do include attorneys' fees. Specifically, Cilantro Taco Grill requires franchisees to indemnify and hold harmless the franchisor, its affiliates, and their respective officers, directors, agents, and employees. This means the franchisee is responsible for protecting these parties from any claims, losses, costs, expenses, liability, and damages.
The indemnification extends to any issues arising directly or indirectly from the franchisee's business operations under the Franchise Agreement. This broad scope means that a wide range of potential problems could trigger the indemnification clause.
Critically, the franchisee's indemnification obligation explicitly includes the costs of defending against any such claims, including attorneys' fees. This means that if a claim is brought against Cilantro Taco Grill related to the franchisee's operations, the franchisee would be responsible for covering the legal costs the franchisor incurs in defending itself, regardless of whether the claim is ultimately successful. This could represent a significant financial burden for the franchisee.