Under what circumstances is a Fly To Fit franchisee NOT required to indemnify Fly To Fit?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise | On demand | You must indemnify and defend (with counsel reasonably acceptable to us) us and our affiliates against all losses in any action by or against us related to, or alleged to arise out of, the operation of your franchise (unless caused by our misconduct or negligence). |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees are generally required to indemnify Fly To Fit and its affiliates against losses from legal actions related to the operation of their franchise. However, this requirement does not apply if the legal action is caused by Fly To Fit's misconduct or negligence.
In practical terms, this means that if a customer sues Fly To Fit because of something that the franchisee did (for example, an injury at the franchisee's studio), the franchisee will likely have to cover Fly To Fit's legal costs and any resulting damages. This is a common arrangement in franchising, as it protects the franchisor from liabilities arising from the franchisee's business operations.
However, if the lawsuit is due to Fly To Fit's own actions or failures, such as providing faulty equipment or misleading advertising, the franchisee is not responsible for indemnifying Fly To Fit. This exception is important for franchisees, as it ensures they are not held liable for issues outside of their control. It is important to note that the franchisee is responsible for providing legal defense with counsel reasonably acceptable to Fly To Fit.