What is the franchisee's obligation to indemnify Creative World School?

Based on the 2025 Creative World School Franchise Disclosure Document, the franchisee's obligation to indemnify Creative World School is not explicitly detailed in the provided excerpts, with one exception for franchisees in Minnesota. Generally, indemnification clauses in franchise agreements require the franchisee to protect the franchisor from losses, damages, or liabilities arising from the franchisee's operation of the business. This can include legal claims, property damage, or breaches of contract. The absence of a general indemnification clause in the provided excerpts suggests that this topic may be covered elsewhere in the Franchise Agreement or is subject to specific state laws.

However, for franchisees in Minnesota, Item 13 is amended to include a specific indemnification clause related to intellectual property. This amendment states that Creative World School will protect the franchisee's right to use the trademarks, service marks, trade names, logotypes, or other commercial symbols and indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name. This means that if a third party sues a Minnesota franchisee for trademark infringement related to the use of Creative World School's branding, Creative World School will cover the franchisee's losses, costs, and expenses.

Given the limited information in the provided excerpts, it is crucial for prospective franchisees to carefully review the full Franchise Agreement and any state-specific addenda to understand the complete scope of their indemnification obligations. Franchisees should consult with a legal professional to fully understand their responsibilities and potential liabilities under the agreement. It would be prudent to ask Creative World School for clarification on the circumstances under which a franchisee would be required to indemnify the franchisor, and whether this differs by state.