Does the Bevaris Alliance indemnity clause benefit Franchisor's subsidiaries and affiliates?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the indemnity clause does extend to cover Bevaris Alliance's subsidiaries and affiliates. The franchise agreement specifies that any reference to the Franchisor includes its subsidiaries and affiliates. Furthermore, the provisions outlined in the indemnity clause are designed to benefit and be enforceable by each of these subsidiaries and affiliates, in addition to Bevaris Alliance itself.

This means that a Bevaris Alliance franchisee's obligation to indemnify the Franchisor also applies to any liabilities, costs, expenses, damages, and losses incurred by the Franchisor's subsidiaries and affiliates. These liabilities can arise from the franchisee's breach of the franchise agreement, negligent performance, or claims made by third parties due to the franchisee's actions or omissions. This broad protection ensures that not only Bevaris Alliance but also its related entities are shielded from potential financial burdens resulting from the franchisee's operations.

However, the indemnity does not cover claims resulting from Bevaris Alliance's own negligence or willful misconduct. This provides a limitation to the franchisee's liability, ensuring they are not responsible for issues arising directly from the Franchisor's actions. Prospective franchisees should carefully review the full scope of the indemnity clause and understand the circumstances under which they may be required to provide indemnification to Bevaris Alliance and its related entities.