Does the Mr. Sandless indemnification agreement require payment to the claimant as a condition precedent to recovery?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that any claim, demand or suit shall be made or institute against any released party because of any such purported assignment, transfer or subrogation, the assigning or transferring party agrees to indemnify and hold such released party free and harmless from and against any such claim, demand or suit, including reasonable costs and attorneys' fees incurred in connection therewith. It is further agreed that this indemnification and hold harmless agreement shall not require payment to such claimant as a condition precedent to recovery under this paragraph.
Source: Item 23 — RECEIPTS (FDD pages 42–167)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the indemnification agreement does not require payment to the claimant as a condition precedent to recovery. This means that if a claim, demand, or suit is made against a released party due to an assignment, transfer, or subrogation, the assigning or transferring party is obligated to indemnify and hold the released party harmless.
This obligation includes covering reasonable costs and attorneys' fees incurred in connection with the claim, demand, or suit. Importantly, the indemnification and hold harmless agreement is structured so that the released party can seek recovery without first having to pay the claimant.
For a prospective Mr. Sandless franchisee, this is a beneficial term in the agreement. It provides a layer of protection, ensuring that they can seek indemnification for covered claims without needing to make an initial payment to the claimant. This can help manage potential financial risks and legal burdens associated with such claims.