Does the Itan franchisee's indemnification obligation survive the transfer, termination, or expiration of the franchise agreement?

According to Itan's 2025 Franchise Disclosure Document, the franchisee's indemnification obligations do indeed survive the transfer, termination, or expiration of the franchise agreement. This means that even after the franchise agreement ends, whether through transfer to a new owner, termination by either party, or the natural expiration of the agreement's term, the franchisee remains responsible for covering certain losses or liabilities incurred by Itan.

Specifically, the FDD states that the franchisee's indemnification obligations continue in full force and effect after the transfer, termination, or expiration of the agreement. This survival clause ensures that Itan is protected from potential liabilities arising from the franchisee's actions or inactions during the term of the agreement, even after the agreement is no longer in effect. These obligations remain until they are fully satisfied or naturally expire.

This is a standard practice in franchising, as it protects the franchisor from long-tail liabilities that may arise from the franchisee's operation of the business. Prospective Itan franchisees should carefully review the specific indemnification provisions in the franchise agreement to understand the scope of their responsibilities and potential liabilities, even after they are no longer operating the franchise.