Does the Degree Wellness franchise agreement specify who is responsible for the consequences of the franchisee's employee's acts and omissions?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
8.3 Responsibility for Acts and Omissions; Indemnification.
- a. You acknowledge that you are the sole and independent owner of your Franchised Business, you are and will be in full control thereof, and you will conduct the business solely in accordance with your own judgment and discretion, subject only to the provisions of this Agreement. As indicated in Section 8.1, you must conspicuously identify yourself, internally and to third parties, as the independent owner of the Franchised Business and as a franchisee of Degree Wellness, and neither you nor any of your employees should represent to any third parties that you are employees or agents of Degree Wellness. You agree that as between you and us, you are solely responsible for the effects, outcomes and consequences of your acts and omissions and the acts and omissions of your employees, representatives and agents in connection with or relating to the operation of your Franchised Business.
- b. We will not assume any liability or be deemed liable for any agreements, representations, or warranties you make that are not expressly authorized under this Agreement, nor will we be obligated for any damages to any person or property directly or indirectly arising out
of the operation of the business you conduct pursuant to this Agreement, whether or not caused by your negligent or willful action or failure to act or acts or omissions deemed to be professional malpractice.
- c. We will have no liability for any sales, use, excise, income, gross receipts, property, or other taxes levied against you or your assets, or on us, in connection with the business you conduct, or any payments you make to us pursuant to this Agreement (except for our own income taxes).
- d. You agree to defend, indemnify and hold harmless us, our affiliates and our and their respective owners, directors, officers, employees, agents, successors, and assigns (individually, an "Indemnified Party," and collectively, the "Indemnified Parties"), from and against any and all claims, lawsuits, demands, actions, causes of action or other events, whether asserted by third parties or us, and for all costs and expenses incurred by the Indemnified Party in connection therewith, including without limitation actual and consequential damages reasonable attorneys', accountants', and/or expert witness fees cost of investigation and proof of facts court costs, other litigation expenses and travel and living expenses, to the extent caused by, relating to or otherwise arising out of (1) the effects, outcomes and consequences of your acts and omissions and the acts and omissions of your employees, representatives and agents in connection with or relating to the operation of your Franchised Business, (2) any agreements, representations, or warranties you make to third parties that are not expressly authorized under this Agreement, (3) any damages to any person or property directly or indirectly arising out of the operation of your Franchised Business, whether or not caused by your negligent or willful action or failure to act or acts or omissions deemed to be professional malpractice, (4) any sales, use, excise, income, gross receipts, property, or other taxes levied against you or your assets, or on us, in connection with the business you conduct, or any payments you make to us pursuant to this Agreement (except for our own income taxes), (5) our actions taken relating to the enforcement of this Agreement, and/or (6) your breach of any provision of this Agreement.
- e. The allocation of responsibility and your indemnification obligations described above will continue in full force and effect after, and notwithstanding, the expiration, renewal or termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee is responsible for the consequences of their employees' actions. The agreement states that as the franchise owner, you are solely responsible for the effects, outcomes, and consequences of your actions, as well as those of your employees, representatives, and agents, in connection with the operation of your Degree Wellness franchise. This means that if an employee's actions or omissions lead to any claims, damages, or legal issues, the franchisee will be held accountable.
Degree Wellness will not be held liable for any agreements, representations, or warranties that the franchisee makes without express authorization, nor will they be obligated for any damages arising from the operation of the franchisee's business. This includes damages caused by negligence, willful action, failure to act, or acts or omissions deemed professional malpractice. The franchisee also agrees to defend, indemnify, and hold harmless Degree Wellness and its affiliates from any claims, lawsuits, or expenses arising from the franchisee's operation of the business, including those related to the actions of their employees.
This allocation of responsibility and indemnification obligation remains in effect even after the expiration, renewal, or termination of the franchise agreement. This underscores the importance of franchisees understanding their responsibilities and ensuring they have adequate insurance coverage to protect themselves against potential liabilities arising from their employees' actions. Franchisees should consult with legal and insurance professionals to fully understand the implications of these provisions and to ensure they are adequately protected.