What must a 1-800-GOT-JUNK? franchisee in Kansas agree to by signing the addendum regarding the indemnity and insurance clauses?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 22 of the Franchise Agreement states that you will indemnify and hold us, and our subsidiaries, affiliates, shareholders, directors, officers, employees, agents, assignees and other franchisees; harmless against all liabilities, obligations, and consequential damages, taxes, costs, losses and actual legal expenses; any claim, litigation or other action or proceeding arising out of the operation of the franchised business.
However, you are not required to indemnify us for claims resulting solely from our breach of this Agreement or other wrongs we commit.
This provision may not be enforceable in Kansas unless separately negotiated and reasonable.
By signing this Addendum, you hereby agree that you separately considered and had an opportunity to consult legal counsel concerning this indemnity, and that you consider it reasonable.
Section 15.2 of the Franchise Agreement requires that you name us as an additional named insured on certain insurance policies.
This provision may not be enforceable in Kansas unless separately negotiated and reasonable.
By signing this Addendum, you hereby agree that you separately considered and had an opportunity to consult legal counsel concerning this insurance clause, and that you consider it reasonable.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, a 1-800-GOT-JUNK? franchisee in Kansas must agree that they have separately considered and had the opportunity to consult legal counsel regarding both the indemnity and insurance clauses within the franchise agreement. Furthermore, the franchisee must consider these clauses reasonable. This agreement is documented in an addendum to both the Franchise Disclosure Document and the Franchise Agreement.
The indemnity clause in Section 22 of the Franchise Agreement generally requires the franchisee to protect 1-800-GOT-JUNK? and its related parties from liabilities, obligations, damages, taxes, costs, losses, and legal expenses arising from the operation of the franchised business. However, the franchisee is not required to indemnify 1-800-GOT-JUNK? for claims resulting solely from 1-800-GOT-JUNK?'s breach of the agreement or other wrongdoings. The FDD states that this provision may not be enforceable in Kansas unless separately negotiated and deemed reasonable.
Similarly, Section 15.2 of the Franchise Agreement mandates that the franchisee names 1-800-GOT-JUNK? as an additional insured party on certain insurance policies. As with the indemnity clause, this insurance provision may not be enforceable in Kansas unless it is separately negotiated and considered reasonable. By signing the addendum, the franchisee acknowledges that they have considered the insurance clause, consulted legal counsel if desired, and find the clause reasonable.
These stipulations highlight the importance of franchisees in Kansas seeking independent legal advice to fully understand the implications of the indemnity and insurance clauses before signing the franchise agreement. The addendum ensures that franchisees are aware of their rights and responsibilities under Kansas law, which may offer different protections than the standard franchise agreement.