What is the Bumper Man Franchisee required to do in addition to the indemnity obligations in Section 20 of the Franchise Agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10. INDEMNIFICATION. IN ADDITION TO THE INDEMNITY OBLIGATIONS OF FRANCHISEE AND ITS AFFILIATES AND PRINCIPALS SET FORTH IN SECTION 20 OF THE FRANCHISE AGREEMENT, FRANCHISEE WILL INDEMNIFY, DEFEND AND HOLD HARMLESS THE FRANCHISOR, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS AND AFFILIATES AGAINST AND REIMBURSE ANY ONE OR MORE THE FRANCHISOR ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS AND AFFILIATES FOR ANY AND ALL LOSSES AND EXPENSES ARISING OUT OF OR RELATED TO ANY CLAIMS, DIRECTLY OR INDIRECTLY, ARISING OUT OF OR RELATED TO FRANCHISEE'S RELATIONSHIP WITH CERTIFIED TECHNICIAN OR CERTIFIED TECHNICIAN'S OPERATION OF THE BUMPER BUSINESS, BREACH OF THIS ADDENDUM OR THE FRANCHISE AGREEMENT, NEGLIGENCE OR WILLFUL MISCONDUCT.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, in addition to the indemnity obligations outlined in Section 20 of the Franchise Agreement, the franchisee must also indemnify, defend, and hold harmless the franchisor, its officers, directors, employees, agents, and affiliates. This means the franchisee is responsible for protecting these parties from any losses and expenses related to claims arising, directly or indirectly, from the franchisee's relationship with a Certified Technician, the Certified Technician's operation of the Bumper Business, any breach of the addendum or the Franchise Agreement, or any negligence or willful misconduct.
This additional indemnification extends the franchisee's liability beyond the scope defined in Section 20 of the Franchise Agreement. It specifically covers the franchisee's relationship with their Certified Technician and the Technician's actions. This is a significant point for prospective franchisees, as they will be held responsible for the actions and potential liabilities created by their technicians.
This clause ensures that Bumper Man is further protected from potential legal and financial repercussions stemming from the franchisee's operations and relationships. A prospective franchisee should carefully consider the implications of this extended indemnification, particularly regarding the selection, training, and oversight of their Certified Technicians, as any issues arising from the technician's actions could become the franchisee's financial responsibility.