What indemnification obligations does a Crave franchisee have, as described in Article 15?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
14.3 You understand and agree that nothing in this Agreement authorizes you to make any contract, agreement, warranty or representation on our behalf, or to incur any debt or other obligation in our name, and that we assume no liability for, nor shall be deemed liable by reason of, any act or omission of yours or any claim or judgment arising therefrom. You shall indemnify and hold us and our officers, directors, and employees harmless against any and all such claims arising directly or indirectly from, as a result of, or in connection with your activities hereunder, as well as the cost, including reasonable attorneys' fees, of defending against them, except that the foregoing shall not apply to infringement actions regarding the Marks which are caused solely by our actions or actions caused by the negligent acts of us or our agents.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, Article 15 is not included in the provided excerpts. However, there are some indemnification obligations mentioned in other sections. Specifically, in relation to the Americans with Disabilities Act (ADA) and general business operations.
Regarding ADA compliance, the franchisee acknowledges their obligation to indemnify Crave's officers, directors, and employees against any claims, losses, costs, expenses, liabilities, compliance costs, and damages resulting from the franchisee's compliance (or lack thereof) with the ADA. This includes legal costs and attorney's fees. This means if a customer sues Crave because the franchisee's restaurant isn't ADA compliant, the franchisee is responsible for covering Crave's related expenses.
Additionally, the franchisee must indemnify Crave and its officers, directors, and employees against claims arising from the franchisee's business activities. This includes costs and reasonable attorney's fees for defending against such claims. However, this indemnification does not extend to infringement actions regarding trademarks caused solely by Crave's actions or negligent acts. This means that if a customer sues Crave because of something the franchisee did, the franchisee will be responsible for Crave's legal costs, unless the issue involves trademark infringement caused by Crave itself.
Since Article 15 is not provided, it is important for a prospective franchisee to ask Crave for a full copy of the Franchise Agreement, including Article 15, to fully understand all indemnification obligations. Understanding the full scope of these obligations is crucial, as they can significantly impact a franchisee's financial responsibilities and risk exposure.