Does the Cinnaholic franchisee's indemnification responsibilities pertain to obligations under Section 42.2?

According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee's failure to comply with any federal, state, or local law or regulation applicable to the operation of the franchise, including any failure to comply with the Anti-Terrorism Laws as defined in Section 42.2, can result in a breach of the agreement.

Specifically, the franchisee is responsible for indemnifying Cinnaholic against claims and liabilities arising out of the bakery's operation or the franchisee's breach of the Franchise Agreement. This indemnification extends to costs incurred in defending against claims, including legal fees. However, the franchisee is not required to indemnify Cinnaholic for claims arising from Cinnaholic's own gross negligence or willful misconduct.

Therefore, if a franchisee fails to comply with Section 42.2 regarding Anti-Terrorism Laws, this would be considered a breach of the agreement, and the franchisee would be responsible for indemnifying Cinnaholic against any resulting claims or liabilities.