Does the indemnification obligation of an Eos Worldwide franchisee to Eos Worldwide survive the expiration or termination of the Franchise Agreement?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
6.3 Indemnification.
You will indemnify us, hold us harmless from, and defend us against any and all liabilities, losses,
expenses, and obligations that we may incur related to any of your Personnel (or any person assisting in providing the Services or Products or working on behalf of the Franchise) arising out of any claim, cause of action, complaint, proceeding (in litigation, arbitration, mediation, administrative process or otherwise) relating to your obligations to pay them any compensation or remuneration or otherwise relating to an employment relationship. You understand and acknowledge that we are under no obligation or liability to you or to any of your Personnel for any remuneration, compensation, commission, benefits, employment or any other duty, responsibility, liability or obligation. Your indemnification obligations: (i) include reimbursement to us of any and all of our legal fees and costs in defending any such claim from your Personnel, (ii) survive expiration or termination of this Agreement, and (iii) extend to our affiliates, representatives and agents.
Source: Item 23 — RECEIPTS (FDD pages 74–246)
What This Means (2025 FDD)
According to Eos Worldwide's 2025 Franchise Disclosure Document, the franchisee's indemnification obligations to Eos Worldwide do indeed survive the expiration or termination of the Franchise Agreement. This means that even after the franchise agreement ends, the franchisee remains responsible for covering certain liabilities, losses, expenses, and obligations that Eos Worldwide may incur.
Specifically, the franchisee must indemnify, hold harmless, and defend Eos Worldwide against any liabilities, losses, expenses, and obligations related to the franchisee's personnel or anyone assisting in providing services or products on behalf of the franchise. This includes claims, causes of action, complaints, or proceedings related to the franchisee's obligations to pay their personnel any compensation or remuneration, or otherwise relating to an employment relationship.
The franchisee's indemnification obligations include reimbursing Eos Worldwide for any and all legal fees and costs in defending such claims from the franchisee's personnel. Furthermore, these obligations extend to Eos Worldwide's affiliates, representatives, and agents, ensuring a broad scope of protection for the franchisor even after the franchise agreement has ended.