Under what circumstances will Dryer Vent Squad indemnify a 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 a franchisee and the franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns, and successors under specific conditions. Dryer Vent Squad will provide indemnification, defense, and hold the franchisee harmless from losses, expenses, claims, causes of action, lawsuits, liabilities, taxes, costs, demands, proceedings, investigations, hearings, and/or damages.
This indemnification applies solely when these issues arise out of or relate to Dryer Vent Squad's gross negligence in the operation of the franchisee's Dryer Vent Squad Business. Furthermore, this gross negligence must be the direct cause of the loss, expense, liability, or damage. To be eligible for indemnification, the franchisee must immediately notify Dryer Vent Squad of any such claim, cause of action, lawsuit, demand, proceeding, investigation, or hearing.
If the conditions are met, Dryer Vent Squad will cover all reasonable costs, fees, and expenses for defending against any claim, cause of action, lawsuit, demand, proceeding, investigation, and/or hearing brought against the franchisee. This includes reasonable accountant fees, attorney fees, expert witness fees, court costs, deposition fees, travel expenses, and other litigation expenses. The franchisee must immediately notify Dryer Vent Squad of such claims to receive this coverage. The terms of this indemnification survive the termination, expiration, or transfer of the Franchise Agreement.