Does the Cool Binz franchisee's obligation to indemnify Cool Binz 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, a 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 operation of the Cool Binz business.
The indemnification covers actual costs incurred by Cool Binz due to claims directly or indirectly related to the franchisee's business operations. The amount will vary depending on the circumstances of each claim. This could include legal fees, settlement costs, or any other expenses Cool Binz incurs as a result of the franchisee's actions or omissions.
For a prospective Cool Binz franchisee, this is a significant consideration. It means that even after ceasing operations, they could still face financial obligations if a claim arises from their past business activities. Franchisees should ensure they maintain adequate insurance coverage and operate their business in a manner that minimizes the risk of potential claims. It is also advisable to seek legal counsel to fully understand the scope and implications of the indemnification clause in the Franchise Agreement.