Does the Fly Fitness franchise agreement include a section on 'Insurance and Indemnification'?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.4.
Increase in Coverage.The levels and types of insurance stated herein are minimum requirements.
Franchisor reserves the right to raise the required minimum requirements for any type of insurance or add additional types of insurance requirements as Franchisor deems reasonably prudent to require.
Within thirty (30) days of any such required new limits or types of coverage, Franchisee must submit proof to Franchisor of Franchisee's coverage pursuant to Franchisor's requirements.
- 15.5 Additional Insured.
All required insurance policies shall name Franchisor and their affiliates and their members, officers, agents, and employees as additional insureds as their interests may appear.
All public liability policies shall contain a provision that the additional insureds, although named as insureds, shall nevertheless be entitled to recover under such policies on any loss caused by Franchisee or Franchisee's servants, agents, or employees.
- 15.6 Indemnification.
TO THE FULLEST EXTENT PERMITTED BY LAW, FRANCHISEE AGREES TO EXONERATE AND INDEMNIFY AND HOLD HARMLESS FLY FITNESS FRANCHISE, L.L.C., FLY HOLDINGS, LLC, LICENSOR, AND ANY OF THESE COMPANIES' PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES AS WELL AS THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SHAREHOLDERS, SUCCESSORS, DESIGNEES AND REPRESENTATIVES (COLLECTIVELY REFERRED TO AS THE "FLY FITNESS INDEMNITEES"), FROM ALL CLAIMS BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATED TO THE OPERATION, CONDITION, OR ANY PART OF FRANCHISEE'S FLY FITNESS FRANCHISE, THE FRANCHISED BUSINESS, THE PRODUCTS, THE PREMISES, OR ANY ASPECT OF THE REAL ESTATE CONNECTED TO FRANCHISEE'S FRANCHISED BUSINESS, WHETHER CAUSED BY FRANCHISEE, FRANCHISEE'S AGENTS OR EMPLOYEES, OR ARISING FROM FRANCHISEE'S ADVERTISING OR BUSINESS PRACTICES.
FRANCHISEE AGREES TO PAY FOR ALL THE FLY FITNESS INDEMNITEES' LOSSES, EXPENSES (INCLUDING, BUT NOT LIMITED TO ATTORNEYS' FEES) OR CONCURRENT OR CONTRIBUTING LIABILITY INCURRED IN CONNECTION WITH ANY ACTION, SUIT, PROCEEDING, INQUIRY (REGARDLESS OF WHETHER THE SAME IS REDUCED TO JUDGMENT OR DETERMINATION), OR ANY SETTLEMENT THEREOF FOR THE INDEMNIFICATION GRANTED BY FRANCHISEE HEREUNDER.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Yes, according to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement does include a section on insurance and indemnification. Specifically, the agreement outlines the franchisee's responsibilities regarding insurance coverage and indemnification of Fly Fitness.
The franchise agreement stipulates that the levels and types of insurance coverage stated are minimum requirements, and Fly Fitness retains the right to increase these minimums or add additional types of insurance as deemed reasonably prudent. Franchisees must provide proof of coverage meeting these requirements within thirty days of any such changes. Additionally, all required insurance policies must name Fly Fitness and its affiliates, members, officers, agents, and employees as additional insureds.
The Fly Fitness franchise agreement also contains an indemnification clause. This clause requires the franchisee to exonerate, indemnify, and hold harmless Fly Fitness and its related parties from all claims arising out of the operation, condition, or any part of the franchisee's Fly Fitness franchise. This includes claims related to the franchised business, products, premises, or any aspect of the real estate connected to the franchisee's business, regardless of whether the claims are caused by the franchisee, their agents, or employees. The franchisee is also responsible for covering all losses and expenses, including attorney's fees, incurred by Fly Fitness in connection with any action, suit, or proceeding related to this indemnification.
This means that a Fly Fitness franchisee bears significant responsibility for managing risks and liabilities associated with their business. They must maintain adequate insurance coverage as mandated by Fly Fitness and be prepared to cover legal and financial costs arising from potential claims or lawsuits related to their franchise operation. Prospective franchisees should carefully review these insurance and indemnification requirements with a legal and insurance professional to fully understand their obligations and potential financial exposure.