Who are the 'Indemnified Parties' that a Cr3 American Exteriors franchisee must indemnify?

According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, the franchisee's obligation to indemnify, reimburse, defend, or hold harmless the franchisor or other parties is modified under Washington state law. Specifically, the franchisee is not required to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities resulting from the indemnified party's negligence, willful misconduct, strict liability, or fraud.

This modification is based on Washington state law (RCW 19.100.180(2)(j), RCW 19.100.180(2)(d), RCW 19.100.190, RCW 19.100.220(2) and RCW 19.100.180(1)), which aims to protect franchisees from unfair contractual obligations. This addendum ensures that Cr3 American Exteriors franchisees operating in Washington are not held responsible for the franchisor's or other parties' misconduct.

For a prospective Cr3 American Exteriors franchisee in Washington, this addendum provides a degree of protection against potentially bearing the costs of the franchisor's or other indemnified parties' mistakes or intentional wrongdoing. It is important to note that this protection is specific to the extent that the losses or liabilities are caused by the indemnified party's actions, and the franchisee may still be responsible for other liabilities as defined in the franchise agreement.