factual

What is the condition for a Crave franchisee and its Principals to receive indemnification against damages arising out of the use of Crave's Marks?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Indemnification against and reimbursement for all damages for which you are held liable in any proceeding arising out of your use of any of the Marks (including settlement amounts), if you and your Principals have fully complied with the terms of the Franchise Agreement. (Franchise Agreement, Section 9.4.)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–42)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, Crave franchisees and their Principals will be indemnified against and reimbursed for all damages for which they are held liable in any proceeding arising out of their use of any of Crave's Marks, including settlement amounts. However, this indemnification is conditional.

To be eligible for indemnification, the franchisee and its Principals must have fully complied with the terms of the Franchise Agreement. This means that any failure to adhere to the stipulations and requirements outlined in the Franchise Agreement could void the franchisee's right to indemnification.

This condition highlights the importance of understanding and strictly adhering to the Franchise Agreement. Franchisees should carefully review the agreement and seek legal counsel to ensure they fully understand their obligations. Failure to comply with the agreement could result in significant financial liability for damages arising from the use of Crave's Marks, without the protection of indemnification from Crave.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.