Does the indemnification obligation of a Lees Famous Recipe franchisee survive the expiration or termination of the Franchise Agreement?

According to the 2025 Lees Famous Recipe Franchise Disclosure Document, the franchisee's indemnification obligations do, in fact, survive the expiration or termination of the Franchise Agreement. Specifically, the FDD states that the indemnities and assumptions of liabilities and obligations remain in full force and effect even after the agreement ends. This means that certain responsibilities and protections outlined in the agreement continue to apply to the franchisee, even after the franchise relationship has concluded.

This survival clause has significant implications for a prospective Lees Famous Recipe franchisee. It means that even after the franchise term ends, the franchisee may still be liable for certain obligations, such as legal claims or liabilities that arose during the term of the franchise agreement. This could include issues related to the operation of the restaurant, compliance with regulations, or disputes with third parties. Franchisees should carefully review the specific indemnification provisions in the franchise agreement to understand the scope of their ongoing responsibilities.

Such clauses are relatively common in franchise agreements across various industries, as they protect the franchisor from potential liabilities arising from the franchisee's past operations. However, the extent and nature of these surviving obligations can vary significantly. Therefore, it is crucial for potential Lees Famous Recipe franchisees to seek legal counsel to fully understand the implications of these clauses and to assess the potential risks and liabilities that may extend beyond the term of the franchise agreement. Understanding these long-term obligations is a key part of evaluating the overall financial and legal risks associated with investing in a Lees Famous Recipe franchise.