What costs will an Amerispec Inspection Services franchisee indemnify the company from in the event of a claim?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
22.2 Indemnification by Franchisee. Neither the Company nor the Franchisee shall be obligated by any agreement, representation or warranty (except warranties specifically authorized by the Company, if any) made by the other, nor shall the Company be obligated for damages to any person or property directly or indirectly arising out of the operation of the Franchised Business or the Franchisee's business conducted hereunder, breach of contract, or caused by the Franchisee's negligence, willful action or failure to act. The Franchisee agrees to indemnify the Company in any action, suit, proceeding, demand, investigation or inquiry (formal or informal) wherein the liability of the Company is alleged or in which the Company is named as a party as a result of activities by the Franchisee. In the event that such an action or claim is made against the Company, the Franchisee shall indemnify and hold harmless the Company from all costs reasonably incurred by the Company in the defense of any such claim brought against it, or in any such action in which it is named as a party, including without limitation, reasonable attorneys' fees, costs of investigation or proof of facts, court costs, other litigation expenses and travel and living expenses, and from all amounts paid or incurred by the Company arising out of such claim or action. The Company shall have the right to defend any such claim against it. Such an undertaking by the Company shall, in no manner or form, diminish the Franchisee's obligation to indemnify the Company and to hold it harmless. The Company shall not be required or obligated to seek recovery from third parties or otherwise mitigate its losses in order to maintain a claim against the Franchisee. If a decision rendered in an action or suit covered by this Paragraph 22 is against the Franchisee or the Company, and the Company desires to appeal the decision, the Franchisee may notify the Company within 10 days of the date of the decision of its intent to abide by the decision, then, in such event, the Franchisee shall pay the Company the amount required of it under this Paragraph 22 and all future costs related to the appeal and/or settlement of the claim shall be the responsibility of the Company.
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 Amerispec Inspection Services FDD, a franchisee is obligated to indemnify the company against certain costs if a claim is made against Amerispec Inspection Services due to the franchisee's actions. This means the franchisee must protect Amerispec Inspection Services from financial loss in specific situations.
The franchisee is responsible for covering all costs reasonably incurred by Amerispec Inspection Services in defending against any claim or action where Amerispec Inspection Services is named as a party due to the franchisee's activities. These costs include, but are not limited to, reasonable attorneys' fees, costs of investigating or proving facts, court costs, other litigation expenses, and travel and living expenses. The franchisee must also cover all amounts paid or incurred by Amerispec Inspection Services arising out of such a claim or action.
Amerispec Inspection Services retains the right to defend itself against any claim, and this does not reduce the franchisee's obligation to indemnify and hold the company harmless. Amerispec Inspection Services is not required to seek recovery from third parties or mitigate its losses before making a claim against the franchisee. However, if a decision is rendered against the franchisee or Amerispec Inspection Services, and Amerispec Inspection Services wishes to appeal, the franchisee has the option to abide by the decision within 10 days. If the franchisee chooses this option, they must pay the amount required under the indemnification clause, and all future costs related to the appeal or settlement become the responsibility of Amerispec Inspection Services.