What costs and expenses are Cool Binz franchisees responsible for covering when indemnifying the Indemnified Parties?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You must protect, defend, and indemnify us, and all of our past, present, and future shareholders, direct and indirect parent companies, subsidiaries, affiliates, officers, directors, employees, attorneys, and designees (the "Indemnified Parties"), and hold Indemnified Parties harmless from and against any and all costs and expenses, including attorneys' fees, court costs, losses, liabilities, damages, claims and demands of every kind or nature on account of any actual or alleged loss, injury, or damage to any person, firm, or corporation, or to any property arising out of, or in connection with, your operation of the COOL BINZ Business. Your obligation to indemnify us will survive the termination or expiration of your Franchise Agreement.
Under no circumstances will we, or any other Indemnified Party, be required to seek recovery from any insurer or other third party, in order to maintain and recover fully a claim against you. You agree that a failure to pursue recovery against others will in no way reduce or alter the amounts we or another Indemnified Party may recover from you.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are responsible for protecting, defending, and holding harmless the Indemnified Parties from any costs and expenses related to the operation of the Cool Binz business. The Indemnified Parties include Cool Binz itself, along with its shareholders, parent companies, subsidiaries, officers, directors, employees, attorneys, and designees. This obligation extends even after the termination or expiration of the Franchise Agreement.
The costs and expenses that the franchisee must cover include attorneys' fees, court costs, losses, liabilities, damages, claims, and demands. These costs can arise from any actual or alleged loss, injury, or damage to any person, firm, or corporation, or to any property, that is connected to the franchisee's operation of the Cool Binz business.
Cool Binz is not obligated to seek recovery from any insurer or other third party before pursuing a claim against the franchisee. The franchisee's obligation to cover these costs is not reduced even if Cool Binz does not attempt to recover from other sources. This means a Cool Binz franchisee could face significant financial responsibility if claims arise from their business operations, highlighting the importance of adequate insurance and careful business practices.