Does the Alloy franchise agreement specify who the franchisee must protect, indemnify, and hold harmless?

According to Alloy's 2025 Franchise Disclosure Document, the franchise agreement in Washington state addresses indemnification. It states that if the franchise agreement requires the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor or other parties, this is modified. The modification ensures that the franchisee is not obligated to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities resulting from the indemnified party's negligence, willful misconduct, strict liability, or fraud.

This means that while an Alloy franchisee may have standard indemnification clauses in their franchise agreement, these clauses are limited in Washington. Alloy franchisees are not responsible for covering the franchisor's liabilities if those liabilities arise from the franchisor's own actions, such as negligence or misconduct. This provides a level of protection for the franchisee against being held responsible for issues caused by the franchisor.

This type of provision is not standard across all franchise systems. Franchise agreements often contain broad indemnification clauses that require the franchisee to protect the franchisor from a wide range of potential liabilities. The modification in the Alloy franchise agreement for Washington franchisees offers a more balanced approach, protecting franchisees from being unfairly burdened with the franchisor's liabilities. Prospective franchisees should carefully review the indemnification clauses in their franchise agreements and understand their potential obligations.