Who is responsible for all costs and expenses related to the franchisee's performance, nonperformance, and the franchisor's enforcement of the Cinnaholic Telephone Listing Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is solely responsible for all costs and expenses related to Franchisee's performance, Franchisee's nonperformance, and Franchisor's enforcement of this Agreement, which costs and expenses Franchisee will pay Franchisor in full, without defense or setoff, on demand.
Franchisee agrees that it will indemnify, defend, and hold harmless Franchisor and its affiliates, and the directors, officers, shareholders, partners, members, employees, agents, and attorneys of Franchisor and its affiliates, and the successors and assigns of any and all of them, from and against, and will reimburse Franchisor and any and all of them for, any and all loss, losses, damage, damages, claims, debts, claims, demands, or obligations that are related to or are based on this Telephone Listing Agreement.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the franchisee is solely responsible for all costs and expenses related to their performance, nonperformance, and Cinnaholic's enforcement of the Telephone Listing Agreement. The franchisee is required to pay these costs and expenses to Cinnaholic in full, without any defense or setoff, upon demand. This means that if Cinnaholic incurs costs to enforce the agreement due to the franchisee's actions or inactions, the franchisee must reimburse Cinnaholic for those expenses.
This responsibility extends to indemnifying, defending, and holding Cinnaholic harmless from any losses, damages, claims, debts, demands, or obligations related to the Telephone Listing Agreement. This includes protecting Cinnaholic and its affiliates, as well as their directors, officers, shareholders, partners, members, employees, agents, and attorneys. The franchisee must also reimburse Cinnaholic for any losses or expenses incurred by these parties.
This clause places a significant financial burden on the Cinnaholic franchisee, as they are liable for a wide range of potential costs associated with the Telephone Listing Agreement. It is important for prospective franchisees to understand the scope of this responsibility and factor it into their financial planning. They should also seek legal counsel to fully understand their obligations under the Telephone Listing Agreement and the potential financial risks involved.