What sections of the Cilantro Taco Grill Franchise Agreement are revised regarding indemnification after a transfer in Washington?

According to the 2024 Cilantro Taco Grill Franchise Disclosure Document, Section 16.3.6 of the Franchise Agreement is revised for Washington franchisees concerning indemnification related to transfer misrepresentations. Specifically, the revision involves deleting a clause that required the franchisee to indemnify Cilantro Taco Grill against claims by the transferee (the party to whom the franchise is being transferred) relating to misrepresentations made during the transfer process. However, this exclusion does not extend to representations made by Cilantro Taco Grill in its Franchise Disclosure Document provided to the transferee.

This revision means that Washington franchisees who transfer their franchise are not required to protect Cilantro Taco Grill from claims made by the buyer regarding misrepresentations during the transfer, except for those misrepresentations originating from Cilantro Taco Grill's own FDD. This change is favorable for franchisees in Washington because it reduces their liability exposure during the transfer process.

This type of revision is important because Washington state law aims to protect franchisees, and this change aligns the franchise agreement with those protections by limiting the franchisee's responsibility for potential misrepresentations during a transfer. Prospective franchisees should note these state-specific revisions, as they can significantly impact their rights and obligations under the franchise agreement.