Under what conditions am I required to indemnify and defend Bombs Away?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our costs and losses | You must indemnify and defend (with | ||
| from any legal | counsel reasonably acceptable to us) us | ||
| action related to the | and our affiliates against all losses in any | ||
| operation of your | action by or against us related to, or | ||
| franchise | alleged to arise out of, the operation of | ||
| your franchise (unless caused by our | |||
| misconduct or negligence). |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, franchisees are required to indemnify and defend Bombs Away and its affiliates against losses from legal actions related to the operation of their franchise. This means that if a legal action is brought against Bombs Away due to something that happened at your franchise, you will be responsible for covering Bombs Away's costs and losses, including legal fees.
Specifically, the franchisee must defend Bombs Away with counsel reasonably acceptable to Bombs Away. This obligation extends to any action by or against Bombs Away that is related to, or alleged to arise out of, the operation of the franchise.
However, there is an exception: franchisees are not required to indemnify Bombs Away if the legal action is caused by Bombs Away's misconduct or negligence. This means that if the issue stems from Bombs Away's own actions or failures, the franchisee is not responsible for covering Bombs Away's losses. This type of clause is common in franchise agreements, shifting the responsibility for operational liabilities to the franchisee while protecting the franchisor from liabilities they directly cause.