Is a Crave franchisee required to indemnify the franchisor for libel or slander against other franchisees?
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. By: Name: Title: PRINCIPALS:
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Crave Franchise Disclosure Document, there is no explicit requirement for a franchisee to indemnify the franchisor specifically for libel or slander against other franchisees. However, the FDD does state that the franchisee acknowledges their obligation to indemnify the franchisor in 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. This obligation extends to costs, including attorneys' fees, related to compliance with the ADA. This is outlined in Attachment 7 to the Franchise Agreement, which focuses on Americans with Disabilities Act Certification.
While the FDD does not directly address libel or slander, the broad indemnification clause related to ADA compliance suggests that franchisees bear responsibility for costs arising from their actions related to ADA compliance. It is common in franchise agreements to find clauses requiring franchisees to indemnify the franchisor against various liabilities, but the scope of these clauses can vary significantly.
A prospective Crave franchisee should carefully review the entire Franchise Agreement, particularly any sections concerning indemnification, to fully understand their potential liabilities. It would be prudent to seek legal counsel to clarify the scope of these obligations and how they might apply to various scenarios, including potential disputes or legal actions involving other franchisees. Understanding the full extent of indemnification responsibilities is crucial for assessing the financial risks associated with the franchise.