What costs are included in the definition of 'claims' for indemnification purposes under the Cream franchise agreement?

According to Cream's 2025 Franchise Disclosure Document, the term "claims" within the indemnification context encompasses a broad range of financial obligations and expenses. Specifically, it includes all obligations, damages (actual, consequential, or otherwise), and costs that an Indemnified Party reasonably incurs while defending against any claim. This definition extends to various types of professional fees and associated costs.

These costs include reasonable fees for accountants, arbitrators, attorneys, and expert witnesses, which can be substantial depending on the complexity and duration of the legal proceedings. Furthermore, the definition covers costs related to the investigation and proof of facts, which are essential for building a strong defense. These costs can include expenses for gathering evidence, conducting interviews, and hiring investigators.

In addition to professional fees and investigative costs, the definition of "claims" also encompasses court costs, travel and living expenses, and other expenses related to litigation or alternative dispute resolution. This applies regardless of whether litigation or alternative dispute resolution is formally commenced. This broad definition means that a Cream franchisee could be responsible for covering a wide array of expenses incurred by the Indemnified Parties in defending against claims arising from the franchisee's operations or breaches of the franchise agreement.