Under what conditions will Degree Wellness indemnify me against damages in a trademark infringement proceeding?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the existence of such insurance, you are and will be responsible for all loss or damage and contractual liability to third persons originating from or in connection with the operation of the Franchise, and for all claims or demands for damages to property or for injury, illness or death of persons directly or indirectly resulting therefrom; and you agree to defend, indemnify and hold us harmless of, from, and with respect to any such claims, loss or damage, which indemnity shall survive the termination or expiration and non-renewal of this Agreement.
- h. In addition to the requirements of the foregoing paragraphs of this Paragraph 10.8, you must maintain any and all insurance coverage in such amounts and under such terms and conditions as may be required in connection with your lease or purchase of the Premises.
- i. The insurance Degree Wellness requires is for its own protection. You should consult with your own insurance agents, brokers, and attorneys to determine what types of coverages and what level of insurance protection you may need or desire, in addition to the coverages and minimum limits specified by Degree Wellness. Your obligation to maintain insurance coverage as described in this Agreement will not be reduced in any manner by reason of any separate insurance we maintain on our own behalf, nor will our maintenance of that insurance relieve you of any obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
Based on the 2025 FDD, Degree Wellness franchisees are responsible for all losses, damages, and contractual liabilities to third parties that arise from the operation of the franchise. This includes any claims or demands for property damage, injury, illness, or death that directly or indirectly result from the franchise's operations.
The franchisee is required to defend, indemnify, and hold Degree Wellness harmless from any such claims, losses, or damages. This obligation to indemnify Degree Wellness survives the termination, expiration, or non-renewal of the franchise agreement. This means that even after the franchise relationship ends, the franchisee remains responsible for covering any related claims or liabilities.
The FDD also states that the insurance Degree Wellness requires is for its own protection, and franchisees should consult their own insurance agents, brokers, and attorneys to determine what types and levels of insurance protection they may need or desire, in addition to the minimums specified by Degree Wellness. The franchisee's obligation to maintain insurance coverage is not reduced by any separate insurance Degree Wellness maintains, nor does Degree Wellness's insurance relieve the franchisee of their obligations under the agreement. Therefore, the franchisee bears the ultimate responsibility for any liabilities and should ensure they have adequate insurance coverage to protect themselves.
In summary, the Degree Wellness franchise agreement places the onus on the franchisee to cover all liabilities and requires them to indemnify Degree Wellness against any claims. Prospective franchisees should carefully consider these obligations and consult with legal and insurance professionals to fully understand their potential liabilities and insurance needs.