factual

Does my obligation to indemnify Gokhale Method survive the termination or expiration of the Gokhale Method franchise agreement?

Gokhale_Method Franchise · 2024 FDD

Answer from 2024 FDD Document

You acknowledge and agree that your indemnification and hold harmless obligations under this Section shall survive the termination or expiration of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 34)

What This Means (2024 FDD)

According to Gokhale Method's 2024 Franchise Disclosure Document, the franchisee's obligation to indemnify Gokhale Method does indeed survive the termination or expiration of the franchise agreement. This means that even after the franchise agreement ends, the franchisee remains responsible for covering certain losses, costs, and expenses that Gokhale Method may incur due to the franchisee's actions or breaches of the agreement. This obligation extends beyond the term of the agreement.

The franchisee's indemnification responsibilities include defending, indemnifying, and holding Gokhale Method harmless from any losses, damages, liabilities, costs, and expenses. These can include reasonable attorney's fees, investigation costs, court costs, and mediation fees. These costs must arise from the franchisee's failure to perform any obligation under the agreement or any amendments to it.

This survival clause is a standard practice in franchising, designed to protect the franchisor from liabilities stemming from the franchisee's actions during the franchise term, even after the agreement has ended. It is important for prospective franchisees to understand the scope of this indemnification and to factor it into their risk assessment. Franchisees should seek legal counsel to fully understand their obligations and potential liabilities under the indemnity clause.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.