What is the page number in the Fat Shack FDD that discusses indemnification?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
20.3. Indemnification
Franchisee agrees to indemnify, defend and hold harmless FSI, its subsidiaries and affiliates, and their respective shareholders, directors, members, managers, officers, managers, members, employees, agents, successors and assigns (the "Indemnified Parties") against, and to reimburse them for all claims, obligations and damages described in this Section 20.3, any and all third party obligations described in Section 20.2, any amounts that FSI spends curing any default of Franchisee under this Agreement or any third party agreement if FSI, in its sole discretion, elects to cure such default, and any and all claims and liabilities directly or indirectly arising out of the operation of the FAT SHACK Restaurant, the use of the Marks and Licensed Methods in any manner, or the violation of any laws including labor and employment laws in the FAT SHACK Restaurant, unless (and then only to the extent) caused by the Indemnified Party's negligence. This indemnity includes any claims arising from the acts or omissions of Franchisee's Authorized Representatives. For purposes of this indemnification, "claims" shall mean and include all obligations, actual and consequential damages and costs reasonably incurred in the defense of any claim against the Indemnified Parties, including, without limitation, reasonable accountants', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses. Each Indemnified Party shall have the right to defend any such claim against it at Franchisee's expense and agree to settlements or any other actions. This indemnity shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the indemnification responsibilities of the franchisee are discussed on page 97. Specifically, Section 20.3 outlines the franchisee's agreement to indemnify, defend, and hold harmless Fat Shack Inc. (FSI), its subsidiaries, affiliates, and their respective stakeholders. This includes protection against claims, obligations, and damages.
This indemnification extends to any third-party obligations, costs incurred by FSI to correct any franchisee defaults, and liabilities arising from the Fat Shack Restaurant's operations, the use of trademarks, or any violation of laws, including labor and employment laws. However, the franchisee is not responsible for claims caused by the negligence of the indemnified parties. The definition of "claims" includes all obligations, actual and consequential damages, and costs related to defending against any claim, such as accountant, attorney, and expert witness fees.
Each indemnified party has the right to defend any claim at the franchisee's expense and to agree to settlements or other actions. This indemnification remains in effect even after the franchise agreement expires or is terminated. This means that even after the franchise relationship ends, the franchisee may still be responsible for certain liabilities related to their past operation of the Fat Shack Restaurant.
For a prospective Fat Shack franchisee, this section highlights a significant financial responsibility. It is crucial to understand the scope of this indemnification and to operate the franchise in compliance with all laws and regulations to minimize the risk of potential claims. Franchisees should consult with a legal professional to fully understand their obligations and potential liabilities under this clause.