Is Bor Restoration liable for the debts, liabilities, or negligence of a Bor Restoration franchisee?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
I hereby release and agree to indemnify BOR Franchising, LLC and its officers, directors, employees and agents harmless from and against any and all liability, expense (including court cost and attorneys' fees) and claims for damage of any nature whatsoever resulting from the investigation of my background in connection with my application to, and ongoing performance as a franchisee.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, it is difficult to determine the extent to which Bor Restoration is liable for the debts, liabilities, or negligence of its franchisees. However, the FDD includes a Credit and Criminal Background Check Release Form, which states that the franchisee will release and indemnify Bor Franchising, LLC from liability. This form requires the franchisee to release Bor Restoration and its representatives from any liability, expenses, and claims resulting from background investigations related to the franchise application and performance. This suggests Bor Restoration attempts to limit its liability related to franchisee actions.
Additionally, the Guaranty of Franchisee's Obligations indicates that a guarantor agrees to be personally bound by the terms of the Franchise Agreement and liable for any breaches. This implies that Bor Restoration seeks to ensure financial obligations are met, but it does not directly address liability for negligence or other actions.
Certain state addenda, such as those for Maryland, include provisions that protect franchisees' rights and prevent waivers of liability under state franchise laws. These addenda suggest that while Bor Restoration may have standard agreements, these are superseded by state laws that protect franchisees. Therefore, prospective franchisees should consult with legal counsel to understand the full scope of liability and how it is affected by both the franchise agreement and relevant state laws.