Who has the right to defend any claim against the Floyds 99 franchisor?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor shall have the right to defend any such claim against it.
The Franchisee shall indemnify, defend and hold harmless the Franchisor, its subsidiaries, parents and affiliates, and their respective shareholders, equity owners, partners, directors, officers, managers, members, employees, agents, representatives, successors and assigns (the "Indemnified Parties"), against, and to reimburse them for all claims, obligations, fines, suits, proceedings, demands, actions of any kind and nature, and damages described in this Section 21.3, any and all obligations described in Section 21.2 and any and all claims and liabilities directly or indirectly arising out of or is based upon or related to this Agreement, the operation of the FLOYD'S 99 Shop or arising out of all acts and omissions of the Franchisee and its employees related to labor or employment practices, failure to comply with any applicable laws or regulations, or the use of the Marks and Licensed Methods in any manner not in accordance with this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, Floyds 99 has the right to defend any claim against it. The FDD specifies that the franchisor has the right to defend itself against claims.
Additionally, the franchisee is obligated to indemnify, defend, and hold harmless the franchisor, its subsidiaries, parents, affiliates, and their respective stakeholders against all claims, obligations, fines, suits, proceedings, demands, actions, and damages. This indemnification extends to all obligations and claims arising from the franchise agreement, the operation of the Floyds 99 shop, or the acts and omissions of the franchisee and its employees related to labor or employment practices, compliance with laws, or the use of the Marks and Licensed Methods not in accordance with the agreement.
This means that a Floyds 99 franchisee could be responsible for covering the franchisor's legal costs and damages in certain situations, particularly those arising from the franchisee's own actions or non-compliance. It is important for a prospective franchisee to understand the scope of this indemnification and to ensure they have adequate insurance coverage and legal counsel to address potential claims.