Under what circumstances will Dryer Vent Squad indemnify the franchisee?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor shall indemnify, defend, and hold Franchisee and Franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns and successors (the "Franchisee Indemnified Parties") harmless from all losses, expenses, claims, causes of action, lawsuits, liabilities, taxes, costs, demands, proceedings, investigation, hearing, and/or damages solely arising out of, or solely relating to, Franchisor's gross negligence in the operation of Franchisee's
Dryer Vent Squad Business that was the direct cause of any such loss, expense, liability or damage provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing, and Franchisor shall pay all of the Franchisee Indemnified Parties' reasonable costs, fees and expenses of defending any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing brought against any of the Franchisee Indemnified Parties or any such claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing in which any of the Franchisee Indemnified Parties is named as a party, including, without limitation, reasonable accountant fees, attorney fees, and expert witness fees, court costs, deposition fees, travel expenses and other litigation expenses provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing. Franchisor agrees that the terms of this Article 10.C. shall survive the termination, expiration or Transfer of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, Dryer Vent Squad will indemnify, defend, and hold harmless the franchisee and their related parties from losses, expenses, claims, lawsuits, liabilities, taxes, costs, demands, proceedings, investigations, hearings, and/or damages. This indemnification applies only when these issues arise solely from Dryer Vent Squad's gross negligence in the operation of the franchisee's Dryer Vent Squad Business and are the direct cause of the loss, expense, liability, or damage.
For a franchisee to be eligible for indemnification, they must immediately notify Dryer Vent Squad of any claim, lawsuit, demand, proceeding, investigation, or hearing. Dryer Vent Squad will then cover all reasonable costs, fees, and expenses related to defending against such claims. These expenses include accountant fees, attorney fees, expert witness fees, court costs, deposition fees, travel expenses, and other litigation expenses.
This indemnification agreement survives the termination, expiration, or transfer of the Franchise Agreement, providing continued protection even after the franchise relationship ends. This means that even if the franchise agreement is no longer in effect, Dryer Vent Squad remains responsible for indemnifying the franchisee against covered claims that arose during the term of the agreement.
It is important for prospective franchisees to understand the specific conditions under which Dryer Vent Squad will provide indemnification. Franchisees should ensure they have a clear understanding of what constitutes "gross negligence" on the part of Dryer Vent Squad and the importance of immediate notification in the event of a claim. This information helps franchisees assess the level of protection offered and their responsibilities in maintaining that protection.