What claims are Boulder Designs franchisees required to indemnify the franchisor against?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. Indemnification. Franchisee and Principals, jointly and severally, shall indemnify Franchisor and its officers, directors, shareholders, agents, and employees, in their individual or corporate capacities, from and against any and all claims, damages, or demands of any nature, whatsoever, arising out of or relating to this Agreement or the operation of the BOULDER DESIGN franchised businesses under the terms of the Franchise Agreements, this Agreement, or any other agreement between the Franchisor and the Franchisee and/or Guarantors.
The Franchisee further expressly acknowledges and agrees that all work completed by the Franchisee pursuant to this National Headstone Program shall be Franchisee's sole responsibility and shall indemnify the Franchisor in the event Franchisor incurs any cost or expense including but not limited to any claims as a result of the project completed by the Franchisee, or delivery and installation thereof. In the event a repair or warranty work needs to be done for the project completed by the Franchisee, Franchisor has the right to facilitate any warranty repairs and pass the costs onto Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees must indemnify the franchisor and its related parties from claims, damages, or demands arising from the franchise agreement or the operation of the Boulder Designs franchised business. This includes any agreement between the franchisor and the franchisee or their guarantors.
Specifically, Boulder Designs franchisees are solely responsible for work completed under the National Headstone Program and must indemnify Boulder Designs against any costs or expenses, including claims resulting from the franchisee's projects, delivery, or installation. If repairs or warranty work are needed for a project completed by the franchisee, Boulder Designs can facilitate these repairs and pass the costs on to the franchisee.
This indemnification clause means that franchisees bear the financial responsibility for any issues, claims, or damages that arise from their actions or the operation of their Boulder Designs business. This is a standard practice in franchising, designed to protect the franchisor from liabilities caused by the franchisee's business activities. Prospective franchisees should carefully consider this obligation and ensure they have adequate insurance and risk management strategies in place.