Does the Ledgers indemnity obligation extend beyond the term of the Franchise Agreement?

According to the 2025 Ledgers Franchise Disclosure Document, the franchisee's obligation to indemnify Ledgers extends beyond the term of the Franchise Agreement. Specifically, the franchisee is obligated to indemnify Ledgers against liabilities, costs, and expenses arising from various circumstances. These circumstances include providing service to any client, breaching or allegedly breaching the Franchise Agreement, negligence, or willful misconduct.

This obligation remains effective not only during the term of the agreement, which is ten years, but also extends to any post-termination obligations. This means that even after the franchise agreement expires or is terminated, the franchisee may still be responsible for covering costs and expenses related to the aforementioned liabilities if they arise from actions or events that occurred during the franchise term or are connected to post-termination responsibilities.

This extended indemnity obligation is a significant consideration for prospective Ledgers franchisees. It means that potential liabilities are not limited to the duration of the franchise agreement, and franchisees need to be aware of the potential for long-term financial exposure. Franchisees should carefully review the scope of these indemnity obligations and ensure they have adequate insurance coverage to mitigate these risks. Furthermore, franchisees should seek legal counsel to fully understand the implications of this clause and how it may affect their business and personal assets beyond the franchise term.