Under what circumstances will Cinnabon reimburse the franchisee for losses related to indemnification?

According to the 2025 Cinnabon Franchise Disclosure Document, franchisees are not obligated to indemnify, reimburse, defend, or hold harmless Cinnabon or other indemnified parties for losses or liabilities resulting from the indemnified party's negligence, willful misconduct, strict liability, or fraud. This modification to the standard indemnification clause protects franchisees from liability in situations where Cinnabon's actions or omissions directly cause the losses or liabilities. This addendum is applicable to franchisees operating in Washington state.

This provision is particularly important for prospective Cinnabon franchisees in Washington as it clarifies the limits of their indemnification obligations. Without this modification, franchisees could potentially be responsible for covering Cinnabon's losses even when those losses are a direct result of Cinnabon's own actions. This modification ensures a fairer distribution of risk and responsibility between the franchisor and franchisee.

It is important to note that this modification is specific to Washington state due to RCW 19.100.180(2)(d). Franchisees operating outside of Washington may have different indemnification obligations as defined in their franchise agreements. Franchisees should carefully review the indemnification clauses in their agreements and consult with legal counsel to understand their rights and obligations in their specific jurisdiction.