Does the Bevaris Alliance franchise agreement specify that the indemnity covers loss of profit?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.2 Franchisee shall indemnify Franchisor against all liabilities, costs, expenses, damages and losses (including any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest, penalties and legal costs including attorney's fees (calculated on a full indemnity basis) and all other reasonable professional costs and expenses) suffered or incurred by Franchisor arising out of or in connection with:
- (a) Franchisee's breach or negligent performance or non-performance of this agreement;
- (b) the enforcement of this agreement;
- (c) any claim made against Franchisor by a third party to the extent that such claim arises out of the breach, negligent performance or failure or delay in performance of this agreement by Franchisee, its employees, agents or subcontractors; and
- (d) any claim made against Franchisor by a third party for death, personal injury or damage to property to the extent attributable to the acts or omissions of Franchisee, its employees, agents or subcontractors.
- 21.3 This indemnity shall not cover Franchisor to the extent that a claim under it results from Franchisor's negligence or willful misconduct.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 FDD, the Bevaris Alliance franchise agreement specifies that the franchisee must indemnify Bevaris Alliance against various liabilities, costs, expenses, damages, and losses. This includes direct, indirect, or consequential losses, loss of profit, loss of reputation, interest, penalties, and legal costs, including attorney's fees.
This means that if Bevaris Alliance incurs losses or expenses due to the franchisee's actions or failure to act as agreed in the franchise agreement, the franchisee is responsible for covering those costs. This indemnity extends to claims made by third parties against Bevaris Alliance that arise from the franchisee's breach, negligence, or failure to perform their obligations. It also covers claims related to death, personal injury, or property damage caused by the franchisee, their employees, agents, or subcontractors.
However, the indemnity does not apply if the claim results from Bevaris Alliance's own negligence or willful misconduct. This provision aims to protect Bevaris Alliance from liabilities arising from the franchisee's operation of the business, while also ensuring that Bevaris Alliance remains responsible for its own actions.
For a prospective franchisee, this highlights the importance of adhering to the franchise agreement and operating the business responsibly to avoid potential indemnity claims. It is crucial to understand the scope of the indemnity and the circumstances under which it applies, as it could have significant financial implications.