Under what circumstances are Crave franchisees and their principals required to indemnify Crave?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
h 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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees and their principals must indemnify Crave under specific circumstances related to compliance with the Americans with Disabilities Act (ADA) and potential legal claims.
Specifically, franchisees must indemnify Crave and its officers, directors, and employees from any claims, losses, costs, expenses, liabilities, compliance costs, and damages resulting from the franchisee's compliance (or lack thereof) with the ADA. This includes covering legal costs and attorney's fees associated with such claims. This means that if a customer or employee brings a claim against Crave related to ADA compliance at the franchisee's location, the franchisee is responsible for covering Crave's associated costs.
Additionally, franchisees and their principals agree to indemnify and hold Crave harmless from any claims, demands, or suits made against Crave due to any purported assignment, transfer, or subrogation of claims by the franchisee or their principals. This includes covering reasonable costs and attorney's fees incurred by Crave in connection with such claims. This provision ensures that Crave is protected from legal liabilities arising from actions taken by the franchisee or their principals regarding assigned or transferred claims.
These indemnification requirements place a significant financial responsibility on Crave franchisees, as they are liable for legal and compliance-related costs stemming from their business operations and legal actions. Prospective franchisees should carefully consider these obligations and consult with legal counsel to fully understand the scope of their indemnification responsibilities.