Under what circumstances will Bee Organized indemnify a franchisee who is sued?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
10.C. INDEMNIFICATION BY FRANCHISOR
Franchisor shall indemnify, defend, and hold Franchisee and Franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns and successors (the "Franchisee Indemnified Parties") harmless from all losses, expenses, claims, causes of action, lawsuits, liabilities, taxes, costs, demands, proceedings, investigations, hearings, and/or damages solely arising out of, or solely relating to, Franchisor's gross negligence in the operation of Franchisee's Bee Organized Business that was the direct cause of any such loss, expense, liability or damage provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing, and Franchisor shall pay all of the Franchisee Indemnified Parties' reasonable costs, fees and expenses of defending any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing brought against any of the Franchisee Indemnified Parties or any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing in which any of the Franchisee Indemnified Parties is named as a party, including, without limitation, reasonable accountant fees, attorney
fees, and expert witness fees, court costs, deposition fees, travel expenses and other litigation expenses provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing. Franchisor agrees that the terms of this Article 10.C. shall survive the termination, expiration or Transfer of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized will indemnify a franchisee and their associated parties (officers, directors, etc.) from losses, expenses, claims, lawsuits, liabilities, taxes, costs, demands, proceedings, investigations, hearings, and/or damages. This indemnification applies only when these issues arise solely from Bee Organized's gross negligence in the operation of the franchisee's Bee Organized Business and was the direct cause of the loss, expense, liability, or damage.
To receive indemnification, the franchisee must immediately notify Bee Organized of any claim, cause of action, lawsuit, demand, proceeding, investigation, or hearing. Bee Organized will then cover all reasonable costs, fees, and expenses for defending against such claims, including accountant fees, attorney fees, expert witness fees, court costs, deposition fees, travel expenses, and other litigation expenses. Again, the franchisee must immediately notify Bee Organized of any such claim or action.
This agreement specifies that the terms of indemnification will remain in effect even after the termination, expiration, or transfer of the Franchise Agreement. This protection offers a significant benefit to the franchisee, as it provides financial coverage in situations where Bee Organized's direct actions of gross negligence lead to legal or financial repercussions for the franchisee's business.