What is the Crave franchisee's obligation regarding indemnification related to compliance with the Americans with Disabilities Act?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the franchisee has specific obligations regarding indemnification related to compliance with the Americans with Disabilities Act (ADA). As part of the franchise agreement, the franchisee certifies that, to the best of their knowledge, their Crave restaurant and its adjacent areas comply with all applicable federal, state, and local accessibility laws, including the ADA. This certification is made by the franchisee as an independent licensee.
Furthermore, the franchisee acknowledges their obligation to indemnify the franchisor, including its officers, directors, and employees. This indemnification covers any claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by the franchisor due to matters associated with the franchisee's compliance with the ADA. This also extends to the costs, including attorneys' fees, related to these matters.
In practical terms, this means that if a Crave franchisee's restaurant is found to be non-compliant with ADA regulations, and this results in legal claims or expenses for the franchisor, the franchisee is responsible for covering those costs. This places a significant responsibility on the franchisee to ensure their restaurant meets all accessibility requirements and to stay informed about any changes in ADA regulations. It is important for prospective franchisees to fully understand the scope of this indemnification and to take proactive steps to ensure compliance to avoid potential financial liabilities.