factual

Who are considered the 'Indemnified Parties' that Augusta Lawn Care franchisees must indemnify?

Augusta_Lawn_Care Franchise · 2025 FDD

Answer from 2025 FDD Document

You shall save, indemnify and hold Augusta Lawn Care and its parents, affiliates, owners, officers, directors and subsidiaries harmless from any and all liability, costs and expenses, of any nature, that any such party incurs related to these obligations.

related to your act or omission, the act or omission of any of your Related Parties, employees, agents or representatives, the Augusta Lawn Care Business's operation, the business you conduct under this Agreement, or your breach of this Agreement, including, without limitation, those alleged to be caused by the Indemnified Party's negligence, unless (and then only to the extent that) the claims obligations, or damages are determined to be caused solely by our gross negligence or willful misconduct in a final, unappealable ruling issued by a court with competent jurisdiction. For purposes of this indemnification, claims include all obligations, damages (actual, consequential, or otherwise), and costs that any Indemnified Party reasonably incurs in defending any claim against it, including, without limitation, reasonable accountants , arbitrators, attorneys' fees, 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. Each Indemnified Party may defend any claim against it at your expense and agree to settlements or take any other remedial, corrective, or other actions. This indemnity will continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination. An Indemnified Party need not seek recovery from any insurer or other third-party, or otherwise mitigate its losses and expenses, in order to maintain and recover fully a claim against you under this subparagraph. You agree that a failure to pursue a recovery or mitigate a loss will not reduce or alter the amounts that an Indemnified Party may recover from you under this paragraph. Without limiting the foregoing, if Augusta Lawn Care is made a party to a legal proceeding in connection with Your act or omission, Augusta Lawn Care may hire counsel to protect its interests and bill You for all costs and expenses incurred by Augusta Lawn Care. You shall promptly reimburse Augusta Lawn Care for such costs and expenses.

Source: Item 23 — RECEIPTS (FDD pages 44–184)

What This Means (2025 FDD)

According to Augusta Lawn Care's 2025 Franchise Disclosure Document, franchisees are required to indemnify Augusta Lawn Care and its parents, affiliates, owners, officers, directors, and subsidiaries. This means the franchisee must protect these parties from any liability, costs, and expenses related to the franchisee's own tax, regulatory, and payroll obligations.

Furthermore, the franchisee's indemnification extends to claims arising from their actions or omissions, the actions or omissions of their related parties, employees, agents, or representatives, the operation of the Augusta Lawn Care business, the business conducted under the Franchise Agreement, or any breach of the agreement. This includes covering all obligations, damages, and costs incurred in defending against any claim, such as accountant, arbitrator, and attorney fees.

This indemnification clause remains in effect even after the Franchise Agreement expires or terminates. Augusta Lawn Care is not obligated to seek recovery from any insurer or third party before making a claim against the franchisee. If Augusta Lawn Care is involved in a legal proceeding due to the franchisee's actions or omissions, Augusta Lawn Care can hire counsel to protect its interests and bill the franchisee for all associated costs and expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.