Under what conditions is a Craters & Freighters franchisee in Washington not obligated to indemnify an indemnified party?

According to the 2025 Craters & Freighters Franchise Disclosure Document, a Washington Craters & Freighters franchisee's obligation to indemnify or hold harmless an indemnified party is limited. Specifically, the franchisee is not obligated to indemnify or hold harmless an indemnified party for losses if those losses are determined to have been caused solely and directly by the indemnified party's negligence, willful misconduct, strict liability, or fraud. This modification is made within the context of RCW 19.100.180(1), which is the Washington Franchise Investment Protection Act.

This provision is an addendum to Section 14 of the Franchise Agreement, which typically outlines the franchisee's indemnification responsibilities. The Washington addendum effectively carves out an exception to this general indemnification obligation. This means that if the indemnified party (which could be Craters & Freighters itself or related parties) is directly responsible for the losses through their own actions or omissions, the franchisee is not required to cover those losses.

For a prospective Craters & Freighters franchisee in Washington, this is a beneficial modification. It provides a degree of protection against being held liable for losses that are demonstrably the fault of the franchisor or other indemnified parties. Franchisees should carefully review Section 14 of the Franchise Agreement and the Washington addendum with legal counsel to fully understand the scope of their indemnification obligations and the exceptions provided under Washington law.