Is Cinnaholic or any other Indemnified Party required to mitigate losses before making a claim against the franchisee?

According to Cinnaholic's 2025 Franchise Disclosure Document, neither Cinnaholic nor any other Indemnified Party is required to mitigate their losses and expenses before making a claim against a franchisee. Specifically, the franchise agreement states that under no circumstances will Cinnaholic or any other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise mitigate its or their losses and expenses, in order to maintain and recover fully a claim against the franchisee.

This means that if a franchisee breaches the franchise agreement, Cinnaholic and its Indemnified Parties can pursue a claim against the franchisee for the full amount of their losses and expenses without first attempting to recover those losses from other sources, such as insurance. This provision is generally favorable to Cinnaholic, as it allows them to pursue claims against franchisees more efficiently.

However, in New York, Section 18.1 of the Agreement is amended to state that the indemnification contained in this section shall not apply to any claim by any third party arising out of a breach of this Agreement by Cinnaholic or any other civil wrong of Cinnaholic. This modification provides additional protection to franchisees operating in New York.