Who is responsible for damages arising from the operation of the Crawlspace Medic franchised business?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
15.6.Indemnification. TO THE FULLEST EXTENT PERMITTED BY LAW, FRANCHISEE AGREES TO EXONERATE AND INDEMNIFY AND HOLD HARMLESS CSM FRANCHISE GROUP, LLC, CRAWLSPACE MEDIC, LLC, AND ANY OF EITHER'S PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES (COLLECTIVELY REFERRED TO AS THE "CRAWLSPACE MEDIC INDEMNITEES") AS WELL AS THE CRAWLSPACE MEDIC INDEMNITEES' DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SHAREHOLDERS, SUCCESSORS, DESIGNEES AND REPRESENTATIVES, FROM ALL CLAIMS BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATED TO THE OPERATION, CONDITION, OR ANY PART OF FRANCHISEE'S CRAWLSPACE MEDIC FRANCHISE, THE FRANCHISED BUSINESS, THE PRODUCTS, THE PREMISES, OR ANY ASPECT OF THE REAL ESTATE CONNECTED TO FRANCHISEE'S FRANCHISED BUSINESS, WHETHER CAUSED BY FRANCHISEE, FRANCHISEE'S AGENTS OR EMPLOYEES, OR ARISING FROM FRANCHISEE'S ADVERTISING OR BUSINESS PRACTICES, REGARDLESS OF WHETHER THE ALLEGED INJURY OR LIABILITY IS CAUSED IN WHOLE OR IN PART BY ANY NEGLIGENT ACT OR OMISSION OF THE CRAWLSPACE MEDIC INDEMNITEES. FRANCHISEE AGREES TO PAY FOR ALL THE CRAWLSPACE MEDIC INDEMNITEES' LOSSES, EXPENSES (INCLUDING, BUT NOT LIMITED TO ATTORNEYS' FEES) OR CONCURRENT OR CONTRIBUTING LIABILITY INCURRED IN CONNECTION WITH ANY ACTION, SUIT, PROCEEDING, INQUIRY (REGARDLESS OF WHETHER THE SAME IS REDUCED TO JUDGMENT OR DETERMINATION), OR ANY SETTLEMENT THEREOF FOR THE INDEMNIFICATION GRANTED BY FRANCHISEE HEREUNDER. THE CRAWLSPACE MEDIC INDEMNITEES SHALL HAVE THE RIGHT TO SELECT AND APPOINT INDEPENDENT COUNSEL TO REPRESENT ANY OF THE CRAWLSPACE MEDIC INDEMNITEES IN ANY ACTION OR PROCEEDING COVERED BY THIS INDEMNITY. FRANCHISEE AGREES THAT TO HOLD THE CRAWLSPACE MEDIC INDEMNITEES HARMLESS, FRANCHSIEE WILL REIMBURSE THE CRAWLSPACE MEDIC INDEMNITEES AS THE COSTS AND EXPENSES ARE INCURRED BY THE CRAWLSPACE MEDIC INDEMNITEES.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the franchisee is primarily responsible for damages arising from the operation of their franchise. The franchisee agrees to indemnify Crawlspace Medic, meaning they will protect Crawlspace Medic from claims and liabilities related to the franchisee's business operations.
This indemnification extends to claims based upon, arising out of, or in any way related to the operation, condition, or any part of the franchisee's Crawlspace Medic franchise, the franchised business, the products, the premises, or any aspect of the real estate connected to the franchised business. This includes situations caused by the franchisee, their agents or employees, or arising from the franchisee's advertising or business practices. The franchisee is responsible regardless of whether the alleged injury or liability is caused in whole or in part by any negligent act or omission of Crawlspace Medic.
The franchisee is obligated to cover all of Crawlspace Medic's losses and expenses, including attorney's fees, incurred in connection with any action, suit, proceeding, or inquiry related to the indemnification. Crawlspace Medic has the right to select and appoint independent counsel to represent them in any action covered by this indemnity, and the franchisee must reimburse Crawlspace Medic for these costs and expenses as they are incurred.
This arrangement is typical in franchising, where franchisees generally bear responsibility for the day-to-day operations of their specific location and the associated liabilities. Prospective Crawlspace Medic franchisees should carefully consider this indemnification clause and ensure they have adequate insurance coverage and risk management strategies in place to protect themselves from potential claims.