Does the Dryject agreement specify that the franchisee's indemnification extends to the franchisor's shareholders?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Indemnification.
Franchisee is solely responsible for all costs and expenses related to Franchisee's performance, Franchisee's nonperformance, and
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, the franchisee is responsible for all costs and expenses related to the franchisee's performance, nonperformance, and liabilities arising from the Dryject business. However, the excerpt does not explicitly state that this indemnification extends to the franchisor's shareholders.
It is standard practice in franchising for the franchisee to indemnify the franchisor against losses, damages, and liabilities arising from the operation of the franchised business. This protects the franchisor from legal claims and other expenses resulting from the franchisee's actions. The absence of specific mention of shareholders in this section does not necessarily mean they are excluded, but it is not explicitly stated.
A prospective Dryject franchisee should seek clarification from Dryject regarding whether the indemnification extends to the franchisor's shareholders. Understanding the full scope of indemnification is crucial for assessing potential financial risks and liabilities associated with the franchise.