What specific breaches by the Creative World School franchisee can trigger the indemnification obligation?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to indemnify, defend and hold harmless us, our affiliates and our respective shareholders, directors, officers, employees, agents, successors and assignees (the "Indemnified Parties") against and to reimburse any one or more of the Indemnified Parties for all claims, obligations and damages described in this Section, any and all taxes described in this Agreement and any and all claims and liabilities directly or indirectly arising out of the School's operation (even if our negligence is alleged, but not proven) or your breach of this Agreement.
For purposes of this indemnification, "claims" includes all obligations, damages (actual, consequential or otherwise) and costs reasonably incurred in the defense of any claim against any of the Indemnified Parties, including, without limitation, reasonable accountants',
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School FDD, a franchisee agrees to indemnify, defend, and hold harmless Creative World School, its affiliates, and their respective shareholders, directors, officers, employees, agents, successors, and assignees (the "Indemnified Parties") against specified claims, obligations, and damages. This includes reimbursing the Indemnified Parties for all claims, obligations, and damages described in this section, all taxes described in the agreement, and all claims and liabilities directly or indirectly arising out of the School's operation, even if Creative World School's negligence is alleged but not proven. The indemnification also applies to a franchisee's breach of the Franchise Agreement.
For indemnification purposes, "claims" encompass all obligations, damages (actual, consequential, or otherwise), and costs reasonably incurred in defending any claim against any of the Indemnified Parties. This includes, without limitation, reasonable accountants' and attorneys' fees.
In practical terms, this means that if a Creative World School franchisee's actions or inactions lead to a claim or liability against Creative World School or its related parties, the franchisee is responsible for covering all associated costs, including legal fees, damages, and taxes. This obligation exists even if the claim arises from the operation of the school and alleges negligence on the part of Creative World School, unless such negligence is proven. Franchisees should be aware of the broad scope of this indemnification clause and take appropriate measures to mitigate potential risks in their school's operation and compliance with the Franchise Agreement.