Does the Cool Binz franchisee's obligation to indemnify the franchisor survive the termination or expiration of the Franchise Agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Indemnification | Actual costs, will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims directly or indirectly arising out of your COOL BINZ Business’s operation. Your obligation to indemnify us will survive the termination or expiration of your Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the franchisee's obligation to indemnify Cool Binz survives the termination or expiration of the Franchise Agreement. This means that even after the franchise agreement ends, whether through its natural expiration or earlier termination, the franchisee remains responsible for reimbursing Cool Binz for any liabilities arising from the franchisee's operation of the Cool Binz business.
This indemnification obligation covers any claims that are directly or indirectly related to the franchisee's Cool Binz business. The amount the franchisee must pay will vary depending on the circumstances and will be based on the actual costs incurred by Cool Binz. These costs are due as they are incurred.
This is a standard clause in most franchise agreements. It protects the franchisor from liabilities stemming from the franchisee's actions, even after the business relationship has ended. Prospective Cool Binz franchisees should carefully consider this obligation and ensure they have adequate insurance coverage and risk management practices in place to minimize potential liabilities.