What does the 360 Painting franchisee agree to do regarding indemnification of the franchisor and its affiliates related to the Internet Listing Agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Indemnification. Franchisee is solely responsible for all costs and expenses related to its performance, its nonperformance, and Franchisor's enforcement of this Agreement, which costs and expenses Franchisee will pay Franchisor in full, without defense or setoff, on demand. Franchisee agree that it will indemnify, defend, and hold harmless Franchisor and its affiliates, and its and their directors, officers, shareholders, partners, members, employees, agents, and attorneys, and the successors and assigns of any and all of them, from and against, and will reimburse Franchisor and any and all of them for, any and all loss, losses, damage, damages, claims, debts, claims, demands, or obligations that are related to or are based on this Internet Listing Agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, the 360 Painting franchisee is responsible for covering all expenses associated with their performance, nonperformance, and the franchisor's enforcement of the Internet Listing Agreement. The franchisee must pay these costs to 360 Painting in full without any deductions or disputes upon request.
Specifically, the franchisee agrees to indemnify, defend, and protect 360 Painting, its affiliates, and their respective personnel (directors, officers, shareholders, etc.) from any losses, damages, claims, debts, demands, or obligations that arise from or are related to the Internet Listing Agreement. This means the franchisee is financially responsible for any legal or financial liabilities incurred by 360 Painting due to the franchisee's actions or inactions related to the agreement.
This indemnification clause places a significant financial burden on the 360 Painting franchisee. It's a common practice in franchising to have franchisees indemnify the franchisor, but the scope and potential costs can vary widely. A prospective franchisee should carefully evaluate the potential risks and liabilities associated with the Internet Listing Agreement and seek legal counsel to fully understand their obligations under this clause.