Does the indemnification obligation to Degree Wellness continue after the termination of the agreement?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.2 The indemnification obligations described in this Section 11 will continue in full force and effect after, and notwithstanding, the expiration, renewal or termination of this Agreement.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 63–66)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the indemnification obligations do continue even after the termination of the agreement. As a Degree Wellness Licensed Provider, you are obligated to defend, indemnify, and hold harmless Degree Wellness and its related parties from any claims, lawsuits, or damages arising from your actions or omissions, or those of your employees, in connection with the services you provide or the operation of your studio. This also extends to any unauthorized agreements or warranties you make to third parties, damages to persons or property, or any breach of the agreement.
This means that even after your franchise agreement ends, you could still be held responsible for financial losses, legal fees, and other expenses resulting from incidents that occurred during the term of your agreement. This obligation remains in effect regardless of whether the agreement expires, is renewed, or is terminated.
This is a significant consideration for prospective franchisees, as it creates a long-term liability that extends beyond the active period of the franchise. It is important to fully understand the scope of these indemnification obligations and to ensure adequate insurance coverage to protect against potential claims. Prospective franchisees should consult with legal and financial advisors to assess the risks and implications of this clause.