What obligations of the Baya Bar franchisee must the business interruption insurance satisfy?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
All required insurance policies shall name Franchisor and their affiliates and their members, officers, agents and employees as additional insureds as their interests may appear. All public liability policies shall contain a provision that the additional insureds, although named as insureds, shall nevertheless be entitled to recover under such policies on any loss caused by Franchisee or Franchisee's servants, agents or employees.
- 15.6 Indemnification. TO THE FULLEST EXTENT PERMITTED BY LAW, FRANCHISEE AGREES TO EXONERATE AND INDEMNIFY AND HOLD HARMLESS BAYA BAR FRANCHISE SYSTEMS, LLC, BAYA BAR, LLC, AND ANY OF THESE COMPANIES' PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES AS WELL AS THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SHAREHOLDERS, SUCCESSORS, DESIGNEES AND REPRESENTATIVES (COLLECTIVELY REFERRED TO AS THE "BAYA BAR INDEMNITEES"), FROM ALL CLAIMS BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATED TO FRANCHISEE'S FRANCHISE AND/OR THE OPERATION THEREOF, INCLUDING BUT NOT LIMITED TO, ANY CLAIM IN CONNECTION WITH FRANCHISEE'S EMPLOYEES OR AGENTS; FRANCHISEE'S COMPUTER SYSTEMS; FRANCHISEE'S PREPARATION, STORAGE, HANDLING AND/OR DISPOSAL OF FOOD OR BEVERAGE PRODUCTS; THE FRANCHISED BUSINESS PREMISES; OR FRANCHISEE'S ADVERTISING OR BUSINESS PRACTICES. FRANCHISEE AGREES TO PAY FOR ALL BAYA BAR INDEMNITEES' LOSSES, EXPENSES (INCLUDING, BUT NOT LIMITED TO ATTORNEYS' FEES) OR CONCURRENT OR CONTRIBUTING LIABILITY INCURRED IN CONNECTION WITH ANY ACTION, SUIT, PROCEEDING, INQUIRY (REGARDLESS OF WHETHER THE SAME IS REDUCED TO JUDGMENT OR DETERMINATION), OR ANY SETTLEMENT THEREOF FOR THE INDEMNIFICATION GRANTED BY FRANCHISEE HEREUNDER. THE BAYA BAR INDEMNITEES SHALL HAVE THE RIGHT TO SELECT AND APPOINT INDEPENDENT COUNSEL TO REPRESENT ANY OF THE BAYA BAR INDEMNITEES IN ANY ACTION OR PROCEEDING COVERED BY THIS INDEMNITY. FRANCHISEE AGREES THAT TO HOLD THE BAYA BAR INDEMNITEES HARMLESS, FRANCHISEE WILL REIMBURSE THE BAYA BAR INDEMNITEES AS THE COSTS AND EXPENSES ARE INCURRED BY THE BAYA BAR INDEMNITEES.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Baya Bar franchisee is required to name the Franchisor and its affiliates, members, officers, agents, and employees as additional insureds on all required insurance policies. This ensures that these parties are protected under the franchisee's insurance coverage. The public liability policies must also contain a provision that allows the additional insureds to recover under the policies for any loss caused by the franchisee or their staff, even though they are named as insureds.
Additionally, the Baya Bar franchisee is obligated to indemnify and hold harmless Baya Bar Franchise Systems, LLC, Baya Bar, LLC, their parent company, subsidiaries, divisions, affiliates, successors, assigns, designees, as well as their directors, officers, employees, agents, shareholders, successors, designees, and representatives from all claims related to the franchisee's franchise and its operation. This includes claims related to the franchisee's employees, computer systems, food and beverage handling, the franchised business premises, and advertising or business practices.
The franchisee must cover all losses and expenses, including attorneys' fees, incurred by the Baya Bar indemnitees in connection with any action, suit, proceeding, or inquiry related to the indemnification. Baya Bar indemnitees have the right to select independent counsel to represent them in any covered action or proceeding, and the franchisee is responsible for reimbursing the indemnitees for these costs and expenses as they are incurred. This comprehensive indemnification ensures that Baya Bar is protected from liabilities arising from the franchisee's operations.