factual

Can a Fly To Fit franchisee settle an Action without the consent of the Indemnitee?

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee shall not settle an Action without the consent of the Indemnitee.

Source: Item 22 — CONTRACTS (FDD page 44)

What This Means (2024 FDD)

According to Fly To Fit's 2024 Franchise Disclosure Document, a franchisee is not allowed to settle an Action without the consent of the Indemnitee. The franchisee is required to indemnify and defend Fly To Fit Franchise and its related entities (Indemnitees) against losses in any Action related to the operation of the business. However, the franchisee is not obligated to indemnify an Indemnitee from Actions arising from the Indemnitee's intentional misconduct or negligence.

Fly To Fit has the option to assume the defense of any Action and control all aspects of defending it, including negotiations and settlement, at the franchisee's expense. This does not diminish the franchisee's obligation to indemnify the Indemnitees.

This means that a Fly To Fit franchisee needs to be aware that they could be responsible for covering legal costs and settlements if an action arises from the operation of their business. They do not have the authority to settle such actions independently, as Fly To Fit retains control over these decisions.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.