factual

Under what circumstances is a Focalpoint Coaching franchisee required to indemnify the Indemnified Parties?

Focalpoint_Coaching Franchise · 2025 FDD

Answer from 2025 FDD Document

and damages directly or indirectly arising out of the Franchised Business' operation, employment matters in connection with the Franchised Business, the business Franchisee conducts under this Agreement, or Franchisee's breach of this Agreement, including, without limitation, those alleged to be or found to have been caused by the Indemnified Party's negligence, unless (and then only to the extent that) the claims, obligations, or damages are determined to be caused solely by Franchisor's gross negligence or willful misconduct in a final, unappealable ruling issued by a court or arbitrator with competent jurisdiction. Franchisee agrees to give Franchisor and the Indemnified Parties written notice of any action, suit, proceeding, claim, demand, inquiry or investigation that could be the basis for a claim for indemnification by any of the Indemnified Parties within three (3) days of Franchisee's actual or constructive knowledge of it. The Indemnified Parties shall have the right, in their sole discretion to: (i) retain counsel of their own choosing to represent them with respect to any claim; and (ii) control the response thereto and the defense thereof, including the right to enter into settlements or take any other remedial, corrective, or other actions. Franchisee agrees to give its full cooperation to the Indemnified Parties in assisting the Indemnified Parties with the defense of any such claim, and to reimburse the Indemnified Parties for all of their costs and expenses in defending any such claim, including court costs and reasonable attorneys' fees, within ten (10) days of the date of each invoice delivered by the Indemnified Parties to Franchisee enumerating such costs, expenses and attorneys' fees.

Source: Item 22 — Contracts (FDD pages 56–57)

What This Means (2025 FDD)

According to the 2025 Focalpoint Coaching Franchise Disclosure Document, a franchisee is required to indemnify the Indemnified Parties for obligations, damages, and costs that arise directly or indirectly from several circumstances. These circumstances include the operation of the Franchised Business, employment matters connected to the Franchised Business, the business the franchisee conducts under the Franchise Agreement, or the franchisee's breach of the Franchise Agreement. This indemnification extends to damages alleged to be caused by the Indemnified Party's negligence.

However, the franchisee is not responsible for indemnification if the claims, obligations, or damages are determined to be caused solely by Focalpoint Coaching's gross negligence or willful misconduct. This determination must be made in a final, unappealable ruling by a court or arbitrator with competent jurisdiction.

The franchisee must provide written notice to Focalpoint Coaching and the Indemnified Parties within three days of becoming aware of any action, suit, proceeding, claim, demand, inquiry, or investigation that could lead to a claim for indemnification. The Indemnified Parties have the right to retain counsel and control the response and defense of any claim. The franchisee is obligated to fully cooperate with the Indemnified Parties in defending any claim and to reimburse them for all costs and expenses, including court costs and reasonable attorneys' fees, within ten days of receiving an invoice detailing these costs.

Disclaimer: This information is extracted from the 2025 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.