Does the definition of 'Franchisor Indemnitees' for Boulder Designs include the franchisor's Affiliates?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Franchisor Indemnitees" means Franchisor and its Affiliates, successors, assigns, and designees of either entity and their respective directors, officers, employees, agents, shareholders, designs, and representatives of each, members, partners, owners, employees, agents, successors and assigns as further discussed in Section 21.3;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of "Franchisor Indemnitees" does include the franchisor's Affiliates. The FDD defines "Franchisor Indemnitees" to mean Boulder Designs Franchising, LLC, and its Affiliates, successors, assigns, and designees of either entity and their respective directors, officers, employees, agents, shareholders, designs, and representatives of each, members, partners, owners, employees, agents, successors and assigns.
This means that the "Franchisor Indemnitees" extends beyond just the Boulder Designs Franchising, LLC, to include any entity that controls, is controlled by, or is under common control with Boulder Designs. This is a common practice in franchising, as it protects not only the franchisor but also related entities that may be involved in the franchise system.
For a prospective franchisee, this definition is important because it clarifies the scope of parties that are protected under various indemnity clauses in the franchise agreement. Franchisees may be required to indemnify (protect and hold harmless) the Franchisor Indemnitees from certain liabilities or claims. Therefore, understanding that this protection extends to Boulder Designs' Affiliates is crucial for assessing potential risks and obligations under the franchise agreement.