Does the Dryject indemnity obligation continue after the termination of the franchise agreement?
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.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the indemnity obligation continues after the termination or expiration of the franchise agreement. Specifically, the franchisee is required to indemnify, defend, and hold harmless Dryject, its officers, directors, shareholders, members, managers, employees, and agents from any claims, costs, obligations, and causes of action arising directly or indirectly from any act or omission of the franchisee. This includes actions by the franchisee's shareholders, directors, members, managers, officers, employees, representatives, or agents, or any action arising from a violation of labor or employment law. It also covers any act occurring on or from the premises of the franchised business or any omission relating to its operation.
This indemnity extends to all 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 incurred in defending against such claims or actions. The franchisee is solely responsible for the safety and well-being of their employees and customers of the franchised business.
This continuation of the indemnity obligation means that even after the franchise agreement ends, a former Dryject franchisee could still be liable for costs and damages resulting from their actions or omissions during the term of the franchise. This is a significant obligation that prospective franchisees should carefully consider. Franchisees should ensure they maintain adequate insurance coverage and operate their business in compliance with all applicable laws and regulations to minimize the risk of potential claims.
This type of clause is relatively standard in franchise agreements, as franchisors seek to protect themselves from liabilities arising from the franchisee's operation of the business. However, the scope and duration of the indemnity can vary, so it is important for prospective franchisees to fully understand their obligations before signing the agreement.