Does a Degree Wellness franchisee have an obligation to defend the franchisor?

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchisee's responsibility to defend the franchisor is limited. Specifically, a provision within the franchise agreement that requires the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor is modified. This modification ensures that the Degree Wellness franchisee is not obligated to indemnify, reimburse, defend, or hold the franchisor harmless for losses or liabilities resulting from the franchisor's negligence, willful misconduct, strict liability, or fraud.

This means that while a Degree Wellness franchisee is generally responsible for the operation of their franchised business and its outcomes, they are protected from bearing the legal and financial burden of the franchisor's own wrongful actions. This is a significant protection for franchisees, as it prevents them from being held liable for issues outside of their control.

This clause reflects a growing trend in franchise agreements to provide more balanced protection for both franchisors and franchisees. Prospective Degree Wellness franchisees should carefully review the indemnification provisions in the franchise agreement to fully understand their rights and obligations in this area. They may also want to consult with an attorney to ensure they fully understand the implications of this clause.