If Crave temporarily operates the Franchised Business, does the franchisee have to indemnify Crave and its representatives?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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 acknowledges their obligation to indemnify Crave, including its officers, directors, and employees. This indemnification applies to any claims, losses, costs, expenses, liabilities, compliance costs, and damages incurred by Crave. The indemnification extends to matters associated with the franchisee's compliance with the Americans with Disabilities Act (ADA), including all related costs and attorney's fees.
This requirement means that if a franchisee fails to comply with ADA regulations at their Crave restaurant, they are responsible for covering any resulting costs incurred by Crave. This includes legal fees, settlement costs, and any expenses related to rectifying the non-compliance. The franchisee's certification of ADA compliance is a crucial element, and any inaccuracies in this certification can lead to significant financial liabilities for the franchisee.
This type of indemnification clause is relatively standard in franchise agreements, as franchisors seek to protect themselves from liabilities arising from the operations of their franchisees. However, the specific focus on ADA compliance highlights the importance Crave places on ensuring accessibility at all its locations. Prospective franchisees should carefully review this clause and ensure they fully understand their obligations regarding ADA compliance to avoid potential financial repercussions.