Who are the 'Indemnified Parties' that a Ledgers franchisee must indemnify?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provision in the franchise agreement or related agreements requiring the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor or other parties is hereby modified such that the franchisee has no obligation to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that they are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, any provision requiring the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor or other parties is modified for Washington franchisees.
Specifically, a Ledgers franchisee in Washington has no obligation to indemnify, reimburse, defend, or hold harmless Ledgers or any other indemnified party for losses or liabilities to the extent that they are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.
This modification is based on Washington state law (RCW 19.100.190 and others), which aims to protect franchisees from unfair contractual obligations. This means that while a Ledgers franchise agreement might typically require the franchisee to cover certain costs or liabilities incurred by the franchisor, this requirement is limited in Washington to exclude situations where Ledgers's own actions (negligence, misconduct, etc.) caused the issue. This provides a degree of protection for franchisees operating in Washington.