Does the indemnification obligation of a Boulder Designs franchisee extend to claims arising from any agreement between the Franchisor and the Franchisee?
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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisee's indemnification obligations do extend to claims arising from any agreement between the franchisor and the franchisee.
Specifically, Boulder Designs franchisees and their principals must indemnify the franchisor and its associated parties from any claims, damages, or demands that arise from or relate to the Franchise Agreement, the operation of the franchised business, or any other agreement between the franchisor and the franchisee. This means that if a third party brings a claim against Boulder Designs that is related to any agreement with the franchisee, the franchisee is responsible for covering the franchisor's costs and losses.
This indemnification clause is broad and places a significant responsibility on the franchisee. It is not uncommon in franchise agreements, but prospective franchisees should carefully consider the scope of this obligation and consult with legal counsel to understand the potential liabilities. Franchisees should also ensure they have adequate insurance coverage to protect themselves against potential claims.