Does the Beyond Juicery Eatery indemnification clause cover employment-related liability?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
al purpose of the Agreement or preserve its or our rights in, or the goodwill underlying, the Trademarks, the System, or the Confidential Information, we may terminate this Agreement upon notice to you.
20.02 Captions in this Agreement are for convenience only and shall not affect the meaning or construction of any provision hereof.
21. INDEPENDENT CONTRACTOR
21.01 You are an independent contractor. We do not operate your business or otherwise have direct or indirect control of, or the right or authority to control, your day-to-day operations or employment related decisions. Nothing herein shall create the relationship of principal and agent, legal representative, joint ventures, joint employer, partners, employee and employer, or master and servant between the parties. No fiduciary duty is owed by, or exists between, the parties. Neither this Agreement nor our course of conduct is intended, nor may anything in this Agreement (nor our course of conduct) be construed, to state or imply that we are the employer of you, your employees, and/or your independent contractors, nor vice versa. Your business is, and shall be kept, totally separate and apart from any that may be operated by us. In all public records, in relationships with other persons, and on letterhead and business forms and applications, you shall indicate your independent ownership of your Restaurant and that you are solely a franchisee of Beyond Juicery + Eatery Franchising, LLC.
21.02 You are your own independent business with permission, consistent with this Agreement, to operate our System. You are exclusively responsible for hiring, retention, and firing decisions related to all employees of your Restaurant. You are exclusively responsible for establishing the terms, conditions, and benefits of employment for all employees, including without limitation, scheduling, employee discipline, employee performance evaluations, awards, promotions, demotions, work assignments and duties to be performed, wages, benefits, vacation time, and sick time policies, the compensation rates for all employees, the work rules and directions governing the manner, means, and methods of the performance of duties, the working conditions related to the safety and health of employees, and for ensuring that all employees are properly trained in the operation of the Restaurant consistently with the Operations Manual. You acknowledge that we do not have direct or indirect control, including through the implementation of our System, of your employment decisions or the terms and conditions of your employees' employment. You agree to establish at your Restaurant your own training program for all employees using our Operations Manual. You agree to require all employees to maintain a neat and clean appearance and to
conform to the standards of dress and/or uniforms we specify from time to time. You must ensure that your employees render prompt, efficient, and courteous service to all customers of your Restaurant. We will not have the power to hire or fire your employees, or otherwise establish any terms and conditions of employment of your employees.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the standard Beyond Juicery Eatery franchise agreement stipulates that franchisees operate as independent contractors. Specifically, Beyond Juicery Eatery asserts that it does not exercise control over the franchisee's day-to-day operations or employment-related decisions. This distinction is crucial as it aims to establish that no employer-employee relationship exists between Beyond Juicery Eatery and the franchisee, their employees, or independent contractors. The agreement explicitly states that it should not be interpreted to imply such a relationship.
To further protect Beyond Juicery Eatery from potential liabilities, franchisees are typically required to maintain several insurance policies. These include Comprehensive General Liability Insurance with coverage of at least $1,000,000 per occurrence and $2,000,000 in aggregate, covering premises, products, contractual, and personal/advertising liabilities. Additionally, franchisees must secure Workers' Compensation Insurance as mandated by law, along with Employers' Liability Insurance of at least $500,000 per accident, per employee, and per policy limit. Beyond Juicery Eatery is to be included as an additional named insured on the General Liability and Umbrella Liability policies to safeguard against liabilities arising from the franchisee's operation of the restaurant.
However, the FDD includes an addendum for franchisees in Indiana that modifies the standard agreement. According to the addendum, franchisees operating in Indiana will not be required to indemnify Beyond Juicery Eatery for any liability imposed on them due to the franchisee's reliance on procedures or products mandated by Beyond Juicery Eatery, provided those procedures or products were utilized as required. This suggests that in Indiana, the indemnification clause is limited in scope and does not extend to situations where the franchisee followed the franchisor's prescribed methods or used their required products. Therefore, outside of Indiana, the franchisee may be responsible for indemnifying Beyond Juicery Eatery even in situations where they followed the franchisor's guidance.
Prospective franchisees should consult with legal counsel to fully understand the implications of the indemnification and insurance requirements, especially concerning employment-related liabilities. Franchisees should also verify if their state has specific addenda modifying the standard indemnification clauses, as is the case in Indiana. Understanding these aspects is crucial for mitigating potential risks associated with operating a Beyond Juicery Eatery franchise.