Who are considered 'Indemnitees' that Crave franchisees must indemnify?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
CRAVE Franchising, LLC ("Franchisor") and ("Franchisee") are parties , to for a the Franchise operation Agreement of dated a Crave restaurant at (the "Franchised Business"). In accordance with Article 2 of the Franchise Agreement, Franchisee certifies to Franchisor that, to the best of Franchisee's knowledge, the Franchised Business and its adjacent areas comply with all applicable federal, state and local accessibility laws, statutes, codes, rules, regulations and standards, including but not limited to the Americans with Disabilities Act. Franchisee acknowledges that it is an independent licensee and the requirement of this certification by Franchisee does not constitute ownership, control, leasing or operation of the Franchised Business. Franchisee acknowledges that Franchisee has relied on the information contained in this certification. Furthermore, Franchisee acknowledge its obligation under this Franchise Agreement directors, to and indemnify employees of and the in officers, connection with any and all claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by the indemnified party(ies) as a result of any matters associated with Franchisee's compliance with the Americans with Disabilities Act, as well as the costs, including attorneys' fees, related to the same.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees are required to indemnify certain parties in relation to compliance with the Americans with Disabilities Act (ADA). Specifically, the franchisee must indemnify the officers, directors, and employees of Crave Franchising, LLC. This obligation arises from any claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by these individuals or the company due to the franchisee's compliance (or lack thereof) with the ADA.
This indemnification clause means that if a customer or employee brings a lawsuit against Crave or its officers, directors, or employees due to an ADA violation at the franchisee's location, the franchisee is responsible for covering the legal costs and any damages awarded. This includes not only the direct costs of the lawsuit but also attorney's fees and any expenses related to achieving compliance.
For a prospective Crave franchisee, this highlights the critical importance of ensuring full compliance with all applicable federal, state, and local accessibility laws, including the ADA, from the outset. It also underscores the need to maintain adequate insurance coverage to protect against potential ADA-related claims. Franchisees should conduct thorough due diligence to verify that their premises meet all accessibility requirements and consult with legal counsel to fully understand their obligations under the ADA and the franchise agreement.
This type of indemnification is a fairly standard practice in franchising, as franchisors seek to protect themselves from liabilities arising from the operations of their franchisees. However, the specific scope of the indemnification and the types of claims covered can vary, so it is important for franchisees to carefully review the franchise agreement and understand their responsibilities.