What Does Indemnity Mean—and How Does It Work in a Franchise Agreement?

Indemnity is one of the most important—and most misunderstood—clauses in a franchise agreement. It’s often buried in dense legal language, skimmed over during review, and only fully appreciated when something goes wrong. Yet indemnification provisions can determine who pays, who defends, and who carries the financial risk when claims, lawsuits, or losses arise. In franchising—where …