Does the Deer Solution franchisee's obligation to indemnify the franchisor survive the termination, expiration, or transfer of the franchise agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
10.B. INDEMNIFICATION BY FRANCHISEE
Franchisee and each Owner shall indemnify, defend through counsel acceptable to Franchisor, and hold Franchisor, Franchisor's affiliates, and their respective officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns and successors (the "Franchisor Indemnified Parties") harmless from all losses, expenses, claims, causes of action, lawsuits,
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the franchisee's obligation to indemnify the franchisor does survive the termination, expiration, or transfer of the franchise agreement. Specifically, the franchisee is required to indemnify, defend, and hold harmless the franchisor, its affiliates, and their respective personnel from all losses, expenses, claims, causes of action, and lawsuits. This obligation extends beyond the term of the agreement.
This means that even after the franchise agreement ends, whether through expiration, termination, or transfer, the franchisee remains responsible for covering any losses or legal issues that arise from their operation of the Deer Solution business. This includes defending the franchisor in lawsuits and covering any associated costs.
Continuing obligations are common in franchise agreements to protect the franchisor from liabilities stemming from the franchisee's actions during the franchise term. Prospective Deer Solution franchisees should carefully consider this ongoing responsibility and ensure they understand the scope of potential liabilities even after they are no longer operating the business.