Does the Crave General Release require payment to a claimant as a condition precedent to recovery under the indemnification agreement?

According to Crave's 2025 Franchise Disclosure Document, the indemnification and hold harmless agreement within the general release does not require payment to a claimant as a condition for recovery. This means that if a claim is made against a Released Franchisor Party due to an assignment, transfer, or subrogation by the franchisee or their principals, Crave can seek indemnification without having to first pay the claimant.

This provision protects Crave from potential liabilities arising from actions taken by the franchisee or their principals related to assigned claims. It allows Crave to pursue indemnification to cover costs and attorney's fees incurred in defending against such claims without needing to make an initial payment to the claimant.

For a prospective Crave franchisee, this clause highlights the importance of ensuring that no claims, rights, or causes of action have been assigned or transferred to another party. Failure to do so could result in the franchisee being responsible for indemnifying Crave against any claims arising from such assignments, including legal costs. This underscores the need for franchisees to maintain clear records and avoid any actions that could lead to unintended assignments or transfers of claims.