Under what circumstances related to Cinnabon procedures or materials will an Indiana Cinnabon franchisee NOT be required to indemnify affiliated parties, notwithstanding Section 13.1 of the Franchise Agreement?

According to the 2025 Cinnabon Franchise Disclosure Document, an Indiana franchisee is not required to indemnify affiliated parties under certain conditions, despite the general indemnification clause in Section 13.1 of the Franchise Agreement. Specifically, this exception applies if the liability is a direct result of the franchisee's proper reliance on procedures or materials provided by Cinnabon, or if the liability is caused by Cinnabon's own negligence.

This provision is outlined in the Indiana Addendum to the Disclosure Document, which modifies the standard indemnification requirements to align with Indiana state law. This modification protects franchisees from bearing the financial burden of liabilities that arise from following Cinnabon's prescribed methods or from Cinnabon's own errors.

For a prospective Cinnabon franchisee in Indiana, this addendum offers a significant safeguard. It ensures that the franchisee is not held responsible for issues stemming directly from the franchisor's guidance or mistakes. This could cover situations such as defective product specifications or incorrect operational procedures provided by Cinnabon. It is important for potential franchisees to fully understand the scope of this protection and how it interacts with other aspects of the Franchise Agreement.