What section of the Cream FDD outlines indemnification?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
F. CONTINUING OBLIGATIONS.
All of our and your (and your owners') obligations which expressly or by their nature survive this Agreement's expiration or termination will continue in full force and effect subsequent to and notwithstanding its expiration or termination and until they are satisfied in full or by their nature expire, including all obligations relating to non-disparagement, non-competition, non-interference, confidentiality, information security, Innovations, and indemnification.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 Cream FDD, obligations related to indemnification are covered in Section F, titled "CONTINUING OBLIGATIONS" of Item 23. This section specifies that certain obligations continue even after the franchise agreement expires or is terminated. These continuing obligations remain in effect until they are fully satisfied or naturally expire.
Specifically, the obligations that survive termination or expiration include non-disparagement, non-competition, non-interference, confidentiality, information security, innovations, and indemnification. This means that even after the franchise agreement ends, the franchisee's duty to protect Cream from certain liabilities and losses, as defined in the indemnification clause, remains in force.
For a prospective Cream franchisee, this indicates that the responsibilities and potential liabilities associated with the franchise do not necessarily end when the agreement does. It is crucial to carefully review the specific terms of the indemnification clause to understand the scope of these continuing obligations and potential long-term liabilities.