Is Kitchen Solvers required to institute a formal proceeding or action for a Kitchen Solvers franchisee's indemnification obligation to be triggered?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, in the event of expiration or termination of this Agreement, you will remain liable for your indemnification obligations specified in Subparagraph 10.B or under common law and other obligations pursuant to any applicable lease for your Business premises or otherwise, which by their very nature are intended to survive the expiration or termination of this Agreement.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, a formal proceeding or action is not necessarily required to trigger a franchisee's indemnification obligations. The franchise agreement states that even after the agreement expires or is terminated, the franchisee remains liable for their indemnification obligations as specified in Subparagraph 10.B or under common law.
This means that Kitchen Solvers franchisees could be responsible for covering losses, damages, or liabilities even after their franchise agreement ends, regardless of whether Kitchen Solvers initiates a formal legal action. The obligation to indemnify Kitchen Solvers can arise from the franchise agreement itself, from common law principles, or from other applicable obligations.
Prospective Kitchen Solvers franchisees should carefully review Subparagraph 10.B of the franchise agreement to fully understand the scope of their indemnification obligations. It is important to consult with a legal professional to assess the potential risks and liabilities associated with these obligations, both during the term of the agreement and after its termination.