What losses, liabilities, claims, proceedings, demands, damages, judgments, injuries, attorneys' fees, costs and expenses are Management Recruiters franchisees responsible for indemnifying the Franchisor against?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
5. INDEMNIFICATION OF FRANCHISOR
Franchisee agrees to indemnify and hold Franchisor and its affiliates, stockholders, directors, officers, agents and representatives (collectively, the "Indemnified Parties") harmless from and against any and all losses, liabilities, claims, proceedings, demands, damages, judgments, injuries, attorneys' fees, costs and expenses that any of the Indemnified Parties incur as a result of any claim brought against any of the Indemnified Parties or any action which any of the Indemnified Parties are named as a party or which any of the Indemnified Parties may suffer, sustain or incur by reason of, or arising out of, Franchisee's breach of any of the terms of any agreement or contract or the nonpayment by Franchisee of any debt or obligation it has with the Telephone Company.
15. INDEMNIFICATION
15.1. Indemnification Obligations. Franchisee shall indemnify, defend, and hold harmless Franchisor, Franchisor's corporate parents, and all of their respective subsidiaries, affiliates, insurers, shareholders, directors, officers, employees, agents, attorneys, successors in interest, and assignees against any loss, damage or expense (including attorneys' fees) or liability for any Claims that arise from or in connection with the Franchise Business or from the acts, omissions, or agreements of Franchisee or any of its officers, directors, employees or agents; or for any Claims arising from any circumstances in which Franchisee fails to adhere to the Brand Standard Materials or other requirements and guidelines for the Franchise Business; or for any enforcement action by the U.S. Immigration and Customs Enforcement agency, the U.S. Equal Employment Opportunity Commission, the Occupational Health and Safety Administration, the United States Department of Labor, or any other Governmental Authority whether federal, state, or municipal. Franchisor shall have the right to defend any Claim against Franchisor at Franchisee's expense. This indemnity shall continue in full force and effect after and regardless of this Agreement's expiration or termination. This indemnity shall extend to any fines, co-payment requirements, or deductible expenses under our insurance policies, and/or our costs for events and violations not covered by our insurance policies, arising from the operation of Franchise Business, including without limitation, those which relate to Franchisee's non-compliance with or violation of federal or state employment Laws, workplace health and safety Laws, wage
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, franchisees must indemnify and hold harmless Management Recruiters and its affiliates, stockholders, directors, officers, agents, and representatives (collectively, the "Indemnified Parties") from and against any and all losses, liabilities, claims, proceedings, demands, damages, judgments, injuries, attorneys' fees, costs, and expenses. This obligation arises from any claim brought against any of the Indemnified Parties or any action in which any of them are named as a party. These liabilities can stem from the franchisee's breach of any agreement or contract terms or the franchisee's failure to pay any debt or obligation to the Telephone Company.
In addition, Management Recruiters franchisees must also indemnify, defend, and hold harmless Management Recruiters, its corporate parents, subsidiaries, affiliates, insurers, shareholders, directors, officers, employees, agents, attorneys, successors in interest, and assignees against any loss, damage, or expense (including attorneys' fees) or liability for any Claims that arise from or in connection with the Franchise Business or from the acts, omissions, or agreements of Franchisee or any of its officers, directors, employees or agents; or for any Claims arising from any circumstances in which Franchisee fails to adhere to the Brand Standard Materials or other requirements and guidelines for the Franchise Business; or for any enforcement action by various governmental authorities.
This indemnification extends to fines, co-payment requirements, or deductible expenses under Management Recruiters' insurance policies, and/or costs for events and violations not covered by their insurance policies, arising from the operation of the Franchise Business. This includes, without limitation, non-compliance with or violation of federal or state employment Laws, workplace health and safety Laws, wage and hour and payment Laws, national or local immigration Laws, or Laws pertaining to Homeland Security. Management Recruiters retains the right to defend any claim against them at the franchisee's expense, and this indemnity remains in effect even after the termination or expiration of the Franchise Agreement.