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

According to Degree Wellness's 2025 Franchise Disclosure Document, the franchise agreement initially requires franchisees to indemnify, reimburse, defend, or hold harmless the franchisor or other parties. However, this provision is modified by Washington state law.

Specifically, the modification states that a Degree Wellness franchisee is not obligated to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that these losses or liabilities are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud. This means that while the franchisee may have some initial responsibility to protect Degree Wellness from certain claims, that responsibility is limited when the franchisor's own actions or failures contribute to the issue.

This modification provides some protection to the franchisee, ensuring they are not held responsible for issues arising from the franchisor's actions. However, franchisees should be aware of the specific conditions under which they might still be required to provide indemnification and should seek legal counsel to fully understand their obligations under the franchise agreement and applicable state laws.