Does the Kitchen Solvers franchisee's indemnification obligation extend to actions or inactions of the franchisee's employees?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
You hereby waive all claims against us (and any affiliates, officers, directors, agents and employees) for damages to property, death, or injuries to persons arising directly or indirectly out of the management or operation of your Business. You must, at all times, defend, indemnify, reimburse and hold harmless to the fullest extent permitted by law, us, or subsidiaries, affiliates, successors and assigns and the representative directors, officers, shareholders, employees, agents and representatives (collectively, the "Indemnitees") from all losses and expenses (including attorneys' fees), incurred in connection with any action, suit, proceedings, claims, demands, investigations, inquiries or liabilities, or any settlement thereof (whether or not a formal proceeding or action is instituted) of any nature whatsoever arising in any manner, directly or indirectly, from or in connection with: (a) the operation, use, or occupancy of your Business, showroom and/ or premises, (b) the operation or use of any vehicle, (c) any breach by you or your failure to comply with the terms and conditions of this Agreement, and/or (d) in connection with your or your employees' actions or inactions, regardless of cause or any concurrent or contributing fault or negligence of us or our affiliates.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the franchisee's indemnification obligations do extend to the actions or inactions of their employees.
Specifically, the franchisee must defend, indemnify, reimburse, and hold harmless Kitchen Solvers and its representatives from all losses and expenses, including attorney's fees, related to any claims arising directly or indirectly from or in connection with the franchisee's or their employees' actions or inactions. This obligation applies regardless of the cause or any concurrent or contributing fault or negligence of Kitchen Solvers.
This means that a Kitchen Solvers franchisee is financially responsible for legal and other expenses resulting from their employees' conduct related to the business. This could include anything from a customer injury in a showroom to a contractual dispute caused by an employee's error.
Prospective franchisees should carefully consider this broad indemnification clause and ensure they have adequate insurance coverage to protect themselves against potential liabilities arising from employee actions. It would also be prudent to consult with a legal professional to fully understand the scope of this obligation.