What is the 1-800-GOT-JUNK? Guarantor's obligation to save the Franchisor harmless?
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)
According to the 2025 Franchise Disclosure Document, Section 22 of the 1-800-GOT-JUNK? Franchise Agreement includes an indemnification clause. This clause stipulates that the franchisee will indemnify and hold 1-800-GOT-JUNK? harmless. This protection extends to 1-800-GOT-JUNK?'s subsidiaries, affiliates, shareholders, directors, officers, employees, agents, assignees, and other franchisees. The franchisee is responsible for covering all liabilities, obligations, consequential damages, taxes, costs, losses, and actual legal expenses arising from any claim, litigation, or other action related to the operation of the franchised business.
However, the franchisee is not required to provide indemnification for claims resulting solely from 1-800-GOT-JUNK?'s breach of the agreement or other wrongs committed by 1-800-GOT-JUNK?.
In Kansas, this provision regarding indemnification may not be enforceable unless it is separately negotiated and deemed reasonable. The addendum specifies that by signing, the franchisee acknowledges they have separately considered the indemnity, had the opportunity to consult legal counsel, and consider it reasonable.