Who has the right to elect whether a Beehive Homes franchisee defends the Indemnified Parties in a claim?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.3. Indemnification. If Franchisor, its Affiliates or their respective shareholders, directors, officers, employees, agents, successors, and assignees (the "Indemnified Parties") shall be subject to any claim, demand, or penalty or become a party to any suit or other judicial or administrative proceeding by reason of any claimed act or omission by Franchisee or Franchisee's owners, employees or agents, or by reason of any act occurring on the Home premises, or by reason of an omission with respect to the business or operation of the Home, Franchisee shall indemnify and hold the Indemnified Parties harmless against all judgments, settlements, penalties, and expenses, including attorneys' fees, court costs, and other expenses of litigation or administrative proceeding, incurred by or imposed on the Indemnified Parties in connection with the investigation or defense relating to such claim, litigation, or administrative proceeding and, at the election of the Indemnified Parties, Franchisee shall also defend the Indemnified Parties.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Indemnified Parties have the right to elect whether a Beehive Homes franchisee defends them in a claim. The Indemnified Parties include Beehive Homes (the Franchisor), its Affiliates, and their respective shareholders, directors, officers, employees, agents, successors, and assignees.
Specifically, if the Indemnified Parties are subject to a claim, demand, or penalty, or become a party to a suit or other judicial or administrative proceeding due to any claimed act or omission by the franchisee, their owners, employees, or agents, or any act occurring on the Home premises, or any omission related to the business or operation of the Home, the franchisee must indemnify and hold the Indemnified Parties harmless. This includes covering all judgments, settlements, penalties, and expenses, such as attorneys' fees, court costs, and other litigation or administrative proceeding expenses.
Furthermore, at the election of the Indemnified Parties, the franchisee must also defend the Indemnified Parties. This means that the Indemnified Parties can choose whether they want the franchisee to handle the defense against such claims. This clause ensures that Beehive Homes and its related parties have the right to decide who will defend them in legal matters arising from the franchisee's operations, providing them with control over the legal strategy and representation.