Does the Dryject franchise agreement specify who is responsible for the costs associated with defending against claims or actions related to the franchisee's operation?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchised Business or otherwise, or for any claim or judgment against Us arising from Your operation of the Franchised Business. 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. As between Us and You, You are solely responsible for the safety and well-being of Your employees and the customers of the Franchised Business. This indemnity shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement or any renewal term.
- (b) You agree to maintain insurance as follows:
- (i) With respect to all insurable properties, You shall maintain or cause to be maintained, all-risk property insurance against loss or damage to business and personal property of the Franchised Business in amounts not less than the replacement cost of such property;
- (ii) You shall maintain or cause to be maintained commercial general liability insurance, including premise liability, products/completed-operations and contractual liability, covering claims for bodily injury or property damage caused as a result of the operation of the Franchised Business and pursuant to this Agreement in amounts set forth in the Operations Manual, currently not less than One Million Dollars ($1,000,000.00) for each occurrenc
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, the franchise agreement outlines specific responsibilities for costs associated with defending against claims or actions. Dryject will protect the franchisee's right to use its trademarks and trade names, and will indemnify the franchisee from losses, costs, or expenses arising from claims related to the use of the Dryject marks or trade name. However, the franchisee is responsible for all costs and expenses related to their performance, nonperformance, and Dryject's enforcement of the agreement.
Specifically, the franchisee agrees to indemnify, defend, and hold harmless Dryject and its affiliates from any losses, damages, claims, or obligations related to the Telephone Listing Agreement. Additionally, the franchisee is required to indemnify and defend Dryject against claims arising from any act or omission of the franchisee, their shareholders, directors, members, managers, officers, employees, representatives, or agents in connection with the operation of the franchised business. This includes actions arising from alleged violations of labor or employment law, or any act occurring on the premises of the franchised business.
Furthermore, the franchisee is responsible for the safety and well-being of their employees and customers. To mitigate these risks, the franchisee must maintain all-risk property insurance and commercial general liability insurance, with coverage of at least $1,000,000 per occurrence and $2,000,000 in general aggregate. This indemnity remains in effect even after the expiration or termination of the franchise agreement.
In summary, while Dryject provides protection and indemnification related to the use of its trademarks and trade names, the franchisee bears significant responsibility for defending against claims arising from their operational activities, including those related to employees, customers, and compliance with laws and regulations. The franchisee's obligation to maintain adequate insurance coverage is crucial in managing these potential liabilities.