Does the 1-800-GOT-JUNK? Guarantor's obligation include costs for the Franchisor's counsel's fees?
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.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not explicitly stated whether the Guarantor's obligations include costs for 1-800-GOT-JUNK?'s counsel fees. However, the document does state that the franchisee will indemnify and hold harmless 1-800-GOT-JUNK? against all liabilities, obligations, consequential damages, taxes, costs, losses, and actual legal expenses from any claim, litigation, or other action arising from the operation of the franchised business. This obligation does not extend to claims resulting solely from 1-800-GOT-JUNK?'s breach of the agreement or other wrongs they commit.
In Kansas, this indemnification provision may not be enforceable unless separately negotiated and deemed reasonable. The franchisee must acknowledge that they have considered the indemnity separately and had the opportunity to consult legal counsel regarding it, agreeing that it is reasonable.
To fully understand the scope of the Guarantor's obligations, a prospective franchisee should ask 1-800-GOT-JUNK? for specific details regarding what the guarantee covers, including whether it extends to the franchisor's legal fees and under what circumstances.