Under what circumstances will City Wide indemnify the franchisee?

According to City Wide's 2025 Franchise Disclosure Document, City Wide will indemnify the franchisee and its employees or agents, referred to as "Franchisee Indemnities", against expenses, damages, claims, suits, losses, actions, judgments, liabilities, and costs, including reasonable attorney's fees. This indemnification applies to claims, actions, judicial or administrative proceedings, personal injury, or property damage brought or threatened due to City Wide's negligence or willful misconduct. This means that if a third party sues a City Wide franchisee because of something City Wide did (or failed to do) negligently or intentionally, City Wide will cover the franchisee's legal costs and any resulting damages.

This protection extends to various types of legal actions, ensuring the franchisee is shielded from financial burdens arising from City Wide's actions. The indemnification survives the termination or expiration of the Franchise Agreement, providing long-term security. This is a significant benefit for franchisees, as it reduces their risk exposure related to the franchisor's potential missteps.

In contrast, the FDD also states that the franchisee will indemnify City Wide from any and all loss, costs, expenses (including reasonable accounting, attorney, and expert witness fees), damages, and liabilities resulting directly or indirectly from the use, condition, or construction, equipping, decorating, maintenance, or operation of the Franchised Business, including the sale of any service sold from the Franchised Business and violation of Privacy Laws. This includes issues arising from latent defects in the Franchised Business and those arising from the death or injury to any person or arising from damage to the property of Franchisee or CITY WIDE, their respective agents or employees, or any third person, firm or corporation, whether or not such losses, claims, costs, expenses, damages, or liabilities were actually or allegedly caused wholly or in part through the negligence of CITY WIDE or any of its agents or employees or resulted from any strict liability imposed on CITY WIDE or any of its agents or employees. This indemnification also survives the termination of the Franchise Agreement.