Does the exclusion of liability in the Speedline agreement for Beggars Pizza include third-party claims against the customer?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS EXCLUSION OF LIABILITY ALSO INCLUDES ANY LIABILITY WHICH MAY ARISE OUT OF THIRD PARTY CLAIMS AGAINST THE CUSTOMER. THE PURPOSE OF THIS PROVISION IS TO LIMIT THE POTENTIAL LIABILITY OF SPEEDLINE AND THE SUPPLIERS ARISING OUT OF THIS AGREEMENT.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the Speedline agreement's exclusion of liability does extend to third-party claims against the customer. This means that Speedline and its suppliers will not be held liable for any claims made against a Beggars Pizza franchisee by a third party, within the limitations defined in the agreement. The purpose of this provision is to limit the potential liability of Speedline and its suppliers arising out of the agreement.
This exclusion of liability is significant for a prospective Beggars Pizza franchisee because it clarifies the allocation of risk between the franchisee and Speedline. While it protects Speedline from certain liabilities, it also means that the franchisee may be responsible for defending against and covering costs associated with third-party claims. These claims could arise from various issues related to the software or services provided by Speedline.
It is important for a potential Beggars Pizza franchisee to fully understand the implications of this liability exclusion. Franchisees should consult with legal counsel to assess the potential risks and ensure they have adequate insurance coverage to protect their business from potential third-party claims related to the Speedline software or services. This is a fairly standard clause in software agreements, but its impact can be substantial, making due diligence essential.