Does the Bevaris Alliance franchise agreement specify who is responsible for the actions of the Franchisee's employees regarding indemnity?
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 Bevaris Alliance Franchise Disclosure Document, the franchisee is responsible for the actions of their employees regarding indemnity. Specifically, the franchisee must indemnify Bevaris Alliance against liabilities, costs, expenses, damages, and losses arising from claims made by third parties due to the acts or omissions of the franchisee's employees. This includes claims for death, personal injury, or property damage attributable to the franchisee's employees.
This means that if a customer or another party is harmed due to the actions of a Bevaris Alliance franchisee's employee, the franchisee is responsible for covering the associated costs, including legal fees, damages, and other expenses incurred by Bevaris Alliance. This responsibility extends to the franchisee's agents and subcontractors as well.
However, the indemnity does not cover Bevaris Alliance to the extent that a claim results from Bevaris Alliance's negligence or willful misconduct. This provision protects the franchisee from being held liable for issues caused directly by Bevaris Alliance itself. It is important for prospective franchisees to understand the scope of this indemnity and to ensure they have adequate insurance coverage to protect themselves against potential claims arising from the actions of their employees, agents, or subcontractors.