What 'Losses and Expenses' are included in the indemnification provided by a Crepe De Licious franchisee?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
14.03 Your Indemnification of Us. Independent of your obligation to procure and maintain insurance, you will indemnify, defend and hold us and our affiliates, the respective officers, directors, partners, shareholders, employees, agents and contractors of these entities, and the successors, assigns, personal representatives, heirs and legatees of all of these persons or entities (collectively, the "Indemnities") harmless, to the fullest extent permitted by law, from and against all expenses, losses, payments or obligations to make payments either (a) to or for third party claimants by any and all Indemnitees, including refunds, or (b) incurred by any and all Indemnitees to investigate, take action, respond to or defend a matter, including investigation and trial charges, costs and expenses, fees, fees paid to professionals, attorney fees, experts' fees, court costs, settlement amounts, judgments and costs of collection (collectively, "Losses and Expenses"), incurred by any Indemnitee for any investigation, claim, action, suit, demand, administrative or alternative dispute resolution proceeding, actually or
allegedly, directly or indirectly, relating to, arising out of, or resulting from or in connection with: any transaction, occurrence or service involving the Franchised Business, the Restaurant, Kiosk, or Food Truck or this Agreement; your employment or other contractual relationship with your employees, workers, managers, or independent contractors, including but not limited to any allegation, claim, finding, or ruling that we are an employer or joint employer of your employees; your marketing, selling, or providing of items and services; any breach or violation of any agreement (including this Agreement), or any law, regulation or ruling by, or any act, error or omission (active or passive) of, you, any party associated or affiliated with you or any of the owners, officers, directors, Designated Managers, employees, and agents of you or your affiliates, including when the active or passive negligence of any Indemnitee is alleged or proven; and any fees, costs, or liabilities incurred by us on your behalf, including fees and costs incurred by us to recover amounts due to you on your behalf. .
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees are required to indemnify the franchisor and its affiliates against various expenses and losses. This indemnification extends to the franchisor's officers, directors, partners, shareholders, employees, agents, and contractors, as well as their successors, assigns, personal representatives, heirs, and legatees. This means the franchisee is responsible for protecting these individuals and entities from financial harm in certain situations.
The 'Losses and Expenses' that the franchisee must cover include all expenses, losses, payments, or obligations to make payments to or for third-party claimants. This includes refunds and costs incurred by the franchisor to investigate, take action, respond to, or defend a matter. The specific costs covered are investigation and trial charges, costs and expenses, fees paid to professionals, attorney fees, experts' fees, court costs, settlement amounts, judgments, and costs of collection.
This indemnification obligation arises from any investigation, claim, action, suit, demand, or administrative or alternative dispute resolution proceeding that relates to, arises out of, or results from the franchisee's business operations. This includes any transaction, occurrence, or service involving the franchised business, restaurant, kiosk, or food truck, as well as the franchisee's employment relationships, marketing activities, and any breach of agreements or laws. The franchisee is also responsible even if the franchisor's negligence is alleged or proven. Furthermore, the franchisee is responsible for any fees, costs, or liabilities incurred by Crepe De Licious on the franchisee's behalf, including costs to recover amounts due to the franchisee.