Does the indemnification obligation of the Licensed Provider to Degree Wellness continue after the expiration or 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 of the Licensed Provider continue even after the agreement expires or is terminated. This means that even after the franchise agreement ends, the Licensed Provider remains responsible for covering certain costs and liabilities.
Specifically, the Licensed Provider must defend, indemnify, and hold harmless Degree Wellness and its related parties from any claims, lawsuits, or expenses arising from the Licensed Provider's actions, omissions, or breaches of the agreement. This includes damages, legal fees, investigation costs, and other litigation expenses. The obligation extends to issues related to the provision of services, operation of the studio, unauthorized agreements with third parties, and damages to persons or property.
This extended liability is a significant consideration for prospective Degree Wellness franchisees. It means that even after ceasing operations, they could still be financially responsible for past actions or failures to comply with the agreement. Franchisees should carefully review the scope of these indemnification obligations and consider obtaining adequate insurance coverage to protect themselves against potential future claims.