Does the Aplus franchisee's obligation to indemnify Sunoco include claims from the franchisee's personnel for unpaid wages or benefits?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- (A) You shall fully protect, defend, reimburse, indemnify, and hold harmless Sunoco, its parent, the respective subsidiaries and affiliates, and the respective officers, directors, employees, and agents of Sunoco, and each and every one of them free and harmless at all times from and against any and all claims, liabilities, litigation expenses, losses, demands, damages, fines, and causes of action and injury to any person (or death) and property of you, including your employees, agents, contractors, customers, and invitees, caused by or resulting in any way from but not limited to the following:
- (6) claims and demands of your personnel, agents, and contractors for compensation, wages, benefits, and other remuneration, including fines, interest, and penalties assessed by appropriate governmental authority in any way associated with payment or non-payment of such remuneration;
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the franchisee's obligation to indemnify Sunoco extends to claims from the franchisee's personnel for compensation, wages, benefits, and other remuneration. This includes any fines, interest, and penalties assessed by a governmental authority related to the payment or non-payment of such remuneration. This requirement is part of a broader indemnity agreement where the franchisee agrees to protect and hold harmless Sunoco from various claims and liabilities.
This means that as an Aplus franchisee, you are responsible for ensuring that all your employees, agents, and contractors are properly compensated. If there are any claims or demands from these individuals for unpaid wages or benefits, or if any governmental authority assesses fines or penalties due to non-payment, you are obligated to cover these costs and protect Sunoco from any related liabilities. This obligation arises from the operation of your business and the performance of your obligations under the lease agreement.
The indemnity extends to various aspects of the business, including the operation of the premises, the condition of equipment, and the dispensing of products. It also covers injuries to any person or property caused by the franchisee, their employees, agents, contractors, customers, or invitees. However, the franchisee is not liable for issues caused by Sunoco's sole negligence.
This indemnity provision highlights the importance of proper employment practices and compliance with labor laws for Aplus franchisees. Failure to meet these obligations could result in significant financial liabilities, as the franchisee is responsible for covering not only the unpaid wages or benefits but also any associated fines, interest, penalties, and legal expenses incurred by Sunoco.