factual

Under the Body20 Initial Franchise Agreement, what are franchisees required to do regarding indemnification?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Indemnification.

Any provision in the franchise agreement or related agreements requiring the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor or other parties is hereby modified such that the franchisee has no obligation to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that they are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.

Source: Item 23 — RECEIPT (FDD pages 74–251)

What This Means (2025 FDD)

According to the 2025 Body20 Franchise Disclosure Document, the standard franchise agreement may contain provisions requiring franchisees to indemnify, reimburse, defend, or hold harmless Body20 or other related parties. However, if a franchisee is operating in Minnesota, Washington, or Rhode Island, these provisions are modified.

Specifically, the Minnesota and Washington riders modify such provisions to limit the franchisee's obligations. In Minnesota, the franchisee is not obligated to indemnify, reimburse, defend, or hold harmless Body20 or any other indemnified party for losses or liabilities resulting from the indemnified party's negligence, willful misconduct, strict liability, or fraud. Similarly, the Washington rider modifies the franchise agreement, ensuring the franchisee is not obligated to indemnify, reimburse, defend, or hold harmless Body20 or any other indemnified party for losses or liabilities caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.

For franchisees in Rhode Island, the FDD states that Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act, potentially affecting the interpretation and enforcement of indemnification clauses. Therefore, prospective Body20 franchisees should carefully review the franchise agreement and any state-specific riders, paying close attention to the indemnification provisions and how they are modified by state law to understand their obligations and potential liabilities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.