Under what circumstances does a 1 800 Packouts franchisee agree to indemnify the Indemnified Parties?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to indemnify and hold harmless us, our affiliates, and our and their respective owners, directors, officers, employees, agents, representatives, successors, and assignees (the "Indemnified Parties") against, and to reimburse any one or more of the Indemnified Parties for, all Losses (defined below) directly or indirectly arising out of or relating to: (i) the Franchised Business' operation; (ii) the business you conduct under this Agreement; (iii) your breach of this Agreement; (iv) your noncompliance or alleged noncompliance with any law, ordinance, rule or regulation, including those concerning the Franchised Business' construction, design or operation, and including any allegation that we or another Indemnified Party is a joint employer or otherwise responsible for your acts or omissions relating to your employees; or (v) claims alleging either intentional or negligent conduct, acts or omissions by you (or your contractors or any of your or their employees, agents or representatives), or by us or our affiliates (or our or their contractors or any of our or their employees, agents or representatives), subject to Section C. (Willful Misconduct or Gross Negligence). "Losses" means any and all losses, expenses, obligations, liabilities, damages (actual, consequential, or otherwise), and reasonable defense costs that an Indemnified Party incurs, including accountants', arbitrators', mediators', attorneys', and expert witness fees, costs of investigation and proof of facts, court costs, travel and living expenses, and other expenses of litigation, arbitration, or alternative dispute resolution, regardless of whether litigation, arbitration, or alternative dispute resolution is commenced.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, a franchisee must indemnify and hold harmless 1 800 Packouts, its affiliates, and their respective owners, directors, officers, employees, agents, representatives, successors, and assignees (collectively known as the "Indemnified Parties") against all losses. These losses must directly or indirectly arise out of or relate to several circumstances.
These circumstances include the operation of the franchised business, the business conducted under the Franchise Agreement, and any breach of the Franchise Agreement by the franchisee. Indemnification is also required for any noncompliance or alleged noncompliance with any law, ordinance, rule, or regulation. This includes those concerning the franchised business's construction, design, or operation, and any allegation that 1 800 Packouts or another Indemnified Party is a joint employer or otherwise responsible for the franchisee's acts or omissions relating to their employees.
Furthermore, the franchisee must indemnify the Indemnified Parties against claims alleging either intentional or negligent conduct, acts, or omissions by the franchisee (or their contractors or any of their or their employees, agents, or representatives), or by 1 800 Packouts or its affiliates (or their or their contractors or any of their or their employees, agents, or representatives), subject to the section on Willful Misconduct or Gross Negligence. Losses include all expenses, obligations, liabilities, and damages, including defense costs such as attorney's fees and court costs.