What section of the Brueggers Bagels franchise agreement covers indemnification against employee claims?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
trademark or copyright or other proprietary right owned or controlled by third parties; (b) Developer's alleged violation or breach of any contract, federal, state or local law, regulation, ruling, standard or directive of any industry standard; (c) libel, slander or any other form of defamation by Developer; (d) Developer's alleged violation or breach of any warranty, representation, agreement or obligation in this Agreement; (e) any acts, errors or omissions of Developer or any of its agents, servants, employees, contractors, partners, proprietors, affiliates, or representatives; (f) any services or products provided by any affiliated or nonaffiliated participating entity; and (g) any damage to the property of Developer or franchisor, their agents or employees, or any third person, firm, corporation or other legal entity, whether or not such losses, claims, costs, expenses, damages, or liabilities were actually or allegedly caused wholly or in part through the active or passive negligence of franchisor or any of its agents or employees, or resulted from any strict liability imposed on franchisor or any of its agents or employees. Each Indemnitee shall be a third party beneficiary of this Section 14 and, as such, shall be able to enforce this indemnification against Developer.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, section 14.1 in Item 22 covers indemnification. Specifically, it states that the developer (franchisee) will indemnify the franchisor against claims arising from various situations, including the acts, errors, or omissions of the franchisee's employees. This means that if a Brueggers Bagels franchisee's employee causes damage or injury, the franchisee is responsible for protecting the franchisor from any resulting lawsuits or liabilities.
This section extends to a wide range of potential issues, such as breach of contract, violations of laws or regulations, defamation, and damage to property. It also applies regardless of whether the franchisor's negligence contributed to the issue, or if strict liability is imposed on the franchisor. This places a significant responsibility on the franchisee to manage their business and employees carefully to avoid potential claims.
Furthermore, each indemnitee (those being protected) is considered a third-party beneficiary of this indemnification clause, giving them the right to directly enforce the indemnification against the developer. This underscores the importance of understanding and complying with the terms of the franchise agreement to mitigate potential financial risks associated with indemnification claims.