Does the Belocal franchisee's indemnification obligation include injury, death, or disability of any person caused by the Franchised Business?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
any Franchisee Indemnifying Party, any Independent Staff, or the Franchised Business; (2) any damage to property caused by any Franchisee Indemnifying Party, any Independent Staff, or the Franchised Business; (3) injury to or death or disability of any person caused by any Franchisee Indemnifying Party, any Independent Staff, or the Franchised Business; (4) any negligence, recklessness, misconduct, or criminal conduct by any Franchisee Indemnifying Party, the operations managers, or any Independent Staff; (5) data breaches related to the Franchised Business or the business of Franchisor or any of its affiliates; (6) any breach of this Agreement or any representations and warranties herein by any Franchisee Indemnifying Party; (7) infringement of any intellectual property rights by any Franchisee Indemnifying Party or any Independent Staff, or otherwise related to the operation of the Franchised Business; (8) any failure by any Franchisee Indemnifying Party, any Independent Staff, or the Franchised Business to warn or give instructions related to any products or services provided by Indemnitees or by Franchisee; (9) any labor or employment law disputes relating to the Franchised Business or claims arising out of Franchisee's employment practices, including claims that any of the Indemnities are the employer, joint employer, or co-employer of Franchisee, any Principal, or Franchisee's agents, employees, or contractors; (10) any thirdparty claim that arises from or that explicitly or implicitly is premised on Franchisor's direct and vicarious liability or that arises from Franchisee's employment and personnel decisions, including wrongful termination, wage and hour violations, and employee harassment and discrimination claims; (11) any acts, errors, or omissions of the Franchised Business, any Franchisee Indemnifying Party, and/or any Independent Staff; (12) the content of, advertisements in, and distribution of the Publication; (13) losses, claims, or damages incurred by persons, other than Franchisee, due to errors or omissions contained in financial statements prepared by any Franchisee Indemnifying Party pursuant to this Agreement, even if cause by the negligence of any Franchisee Indemnifying Party or others for whom Franchisee is responsible under the law; or (14) any third-party claim that arises from or is connected with the ownership, establishment, operation, or closure of the Franchised Business and/or the Publication.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchisee's indemnification obligations do extend to injury, death, or disability of any person caused by the Franchised Business. Specifically, the franchisee must indemnify Belocal against claims arising from these incidents. This means the franchisee is financially responsible for covering losses, damages, or expenses Belocal incurs due to such events.
This obligation extends to incidents caused by the franchisee, their staff, or the Franchised Business itself. This includes not only direct actions but also negligence, recklessness, or even criminal conduct. The franchisee's responsibility also encompasses failures to provide adequate warnings or instructions related to Belocal's products or services.
For a prospective Belocal franchisee, this highlights the critical importance of maintaining adequate insurance coverage. The FDD specifies minimum insurance requirements, including comprehensive general liability insurance with $2,000,000 per occurrence and $4,000,000 in general aggregate, as well as automobile liability coverage of $300,000. However, franchisees should carefully assess their specific risks and consider higher coverage limits to adequately protect themselves against potential indemnification claims. Additionally, Belocal retains the right to require franchisees to obtain additional insurance policies or higher limits.
It is also important to note that this indemnification obligation is in addition to the franchisee's responsibility to procure and maintain insurance policies protecting against personal injury, death, or property damage. This dual obligation underscores the significant financial risks associated with operating a Belocal franchise and the need for franchisees to prioritize risk management and insurance planning.