Is the Beggars Pizza franchisor liable for any act or omission of the franchisee in its operation of the restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
xhibiting a notice of that fact in a conspicuous place at the Premises, the content of which Franchisor may specify. Notwithstanding any other provision of the Agreement, Franchisee is solely responsible for all personnel and employment decisions relating to the Restaurant.
- 20.2 No Authority to Contract. Nothing in the Agreement authorizes Franchisee to make any contract, agreement, warranty or representation on Franchisor's behalf, or to incur any debt or other obligation in Franchisor's name; and Franchisor will in no event assume liability for, or be deemed liable hereunder as a result of, any such action; nor will Franchisor be liable by reason of any act or omission of Franchisee in its operation of the Restaurant or for any claim or judgment arising therefrom against Franchisee or Franchisor.
- 20.3 Indemnification. Franchisee must indemnify and hold harmless Franchisor and its affiliates, and their respective officers, directors and employees against any claims, losses, costs, expenses, liabilities, and damages arising directly or indirectly from, as a result of, or in connection with Franchisee's operation of the Restaurant, the business conducted under the Agreement, Franchisee's failure to comply with applicable regional, national, international, and local laws and regulations as described herein, or Franchisee's breach of the Agreement including, without limitation, those alleged to be caused by Franchisor's negligence unless (and then only to the extent
that) the claims, obligations, and damages are determined to be caused solely by Franchisor's gross negligence or willful misconduct acc
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza will not be held liable for any act or omission of the franchisee in the operation of their restaurant. The franchise agreement specifies that the franchisee is an independent contractor and does not authorize the franchisee to make any agreement on Beggars Pizza's behalf.
Specifically, Beggars Pizza will not assume liability for any action made by the franchisee, nor will they be liable for any claim or judgment against the franchisee that arises from the franchisee's operation of the restaurant. This underscores the importance of the franchisee's independent operation and their responsibility for all aspects of their business.
Furthermore, the franchisee is obligated to indemnify and hold harmless Beggars Pizza and its affiliates from any claims, losses, costs, expenses, liabilities, and damages arising from the franchisee's operation of the restaurant, failure to comply with laws and regulations, or breach of the franchise agreement. This indemnification clause protects Beggars Pizza from liabilities caused by the franchisee's actions, emphasizing the franchisee's accountability for their business conduct. However, this protection does not extend to situations where claims, obligations, and damages are determined to be caused solely by Beggars Pizza's gross negligence or willful misconduct, as determined by a court.