Under what circumstances is a Crave Cookies franchisee NOT obligated to indemnify an Indemnitee?

According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee is generally required to indemnify Crave Cookies Franchising and its related parties (Indemnitees) against losses arising from the operation of the business. However, there is a specific exception to this obligation.

The franchisee is not obligated to indemnify an Indemnitee from actions resulting from the Indemnitee's intentional misconduct or negligence. This means that if Crave Cookies Franchising or any of its related parties engage in intentional misconduct or negligence that leads to a claim or loss, the franchisee is not responsible for covering those losses.

This provision offers a degree of protection to the franchisee, ensuring they are not held liable for the wrongful actions of Crave Cookies itself. However, it's important to note that the franchisee remains responsible for losses arising from their own actions or the actions of their employees in operating the Crave Cookies business, unless those losses are a direct result of the Indemnitee's intentional misconduct or negligence. Franchisees should seek legal counsel to fully understand the scope of this indemnity and their rights.