Who is required to defend, indemnify, and hold Burneys Sweets More harmless?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Hold Harmless; Indemnification | Any and all types of damages, liabilities, losses, costs, and expenses we incur as a result of third parties claims or from your ownership and operations of your Shop. Amount will depend on unknown factors. | Defense cost when suit occurs. Indemnification when payment required. | You, your owners, and your guarantors must defend, indemnify, and hold us and related parties harmless for a broad range of claims related to your actions, omissions, ownership, and operations of your Shop. |
Source: Item 6 — OTHER FEES (FDD pages 11–17)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the franchisee, their owners, and their guarantors are required to defend, indemnify, and hold Burneys Sweets More and its related parties harmless. This obligation extends to a broad range of claims that may arise from the franchisee's actions, omissions, ownership, and operation of their Burneys Sweets More shop. The specific amount for hold harmless and indemnification will depend on unknown factors.
This means that if a third party brings a claim against Burneys Sweets More due to something related to the franchisee's shop, the franchisee is responsible for defending Burneys Sweets More against the claim, covering any resulting liabilities, losses, costs, and expenses. This could include legal fees, settlement costs, and any damages awarded to the third party. The obligation arises both from third-party claims and from the franchisee's ownership and operation of the shop.
This is a standard clause in franchise agreements, designed to protect the franchisor from liabilities arising from the franchisee's business. However, it places a significant financial burden on the franchisee, as they could be responsible for substantial costs depending on the nature and extent of any claims. Prospective franchisees should carefully consider this obligation and ensure they have adequate insurance coverage and legal advice to mitigate this risk. It is also important to understand what specific actions or omissions could trigger this indemnification obligation and to operate the business in a way that minimizes the risk of third-party claims.