Does the Dryject agreement specify that the franchisee is responsible for travel and living expenses incurred in defending against claims or actions?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall indemnify, defend and hold Us harmless and hold harmless Our officers, directors, shareholders, members, managers and employees, and agents from and against any and all claims, costs, obligations, and causes of action, arising directly or indirectly from any act or omission of Yours or any of Your shareholders, directors, members, managers, officers, employees, representatives or agents, as a result of, or in connection with, Your operation of the Franchised Business, the actions of any of Your shareholders, directors, members, managers, officers, employees, representatives or agents, or any action arising from an allegation of a violation of labor or employment law; or by reason of any act occurring on, at or from the premises of the Franchised Business or by reason of an omission relating to the operation of the Franchised Business, as well as the costs, including reasonable accountants', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses We incur in defending against such claims or actions.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, the franchisee is responsible for indemnifying Dryject and its related parties from claims arising from the franchisee's actions or omissions in operating the franchised business. This indemnification includes covering Dryject's costs, such as reasonable accountant, attorney, and expert witness fees, investigation costs, court costs, and other litigation expenses.
Specifically, the Dryject franchise agreement stipulates that the franchisee must cover Dryject's travel and living expenses incurred while defending against such claims or actions. This means that if Dryject faces legal action due to the franchisee's business operations, the franchisee is obligated to pay for Dryject's related travel and accommodation costs during the legal proceedings.
This requirement places a significant financial burden on the Dryject franchisee. It is crucial for prospective franchisees to understand the scope of this indemnification clause and factor in potential legal defense costs, including travel and living expenses, when assessing the financial viability of the franchise. Franchisees should also maintain adequate insurance coverage to mitigate these risks.