What section of the Monicals Pizza Franchise Agreement covers the franchisee's obligation to provide indemnification?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
21. RELATIONSHIP AND INDEMNIFICATION
21.1 Relationship
This Agreement is purely a contractual relationship between the parties and does not appoint or make Franchisee an agent, legal representative, joint venturer, partner, employee, servant or independent contractor of Franchisor for any purpose whatsoever. Franchisee may not represent or imply to third parties that Franchisee is an agent of Franchisor, and Franchisee is in no way authorized to make any contract, agreement, warranty or representation on behalf of Franchisor, or to create any obligation, expressed or implied, on Franchisor's behalf. During the term of this Agreement, and any extension or renewal hereof, Franchisee shall hold itself out to the public only as a franchisee and an owner of the Franchised Restaurant operating the Franchised Restaurant pursuant to a franchise from Franchisor. Franchisee shall take such affirmative action as may be necessary to do so including, without limitation, exhibiting a notice in the form specified in Section 6.2 and on all forms, stationery or other written materials, the content of which Franchisor has the right to specify. Under no circumstances shall Franchisor be liable for any act, omission, contract, debt or any other obligation of Franchisee. Franchisor shall in no way be responsible for any injuries to persons or property resulting from the operation of the Franchised Restaurant.
21.2 Standard of Care
This Agreement does not establish a fiduciary relationship between the parties. Unless otherwise specifically provided in this Agreement with respect to certain issues, whenever this Agreement requires Franchisee
to obtain Franchisor's written consent or permits Franchisor to take any action or refrain from taking any action, Franchisor is free to act in its own self-interest without any obligation to act reasonably, to consider the impact on Franchisee or to act subject to any other standard of care limiting Franchisor's right, except as may be provided by statute or regulation.
21.3 Indemnification
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–20)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Section 21.3 of the Franchise Agreement outlines the franchisee's indemnification obligations. Indemnification generally requires the franchisee to protect Monicals Pizza from losses, damages, or liabilities arising from the franchisee's operation of the business.
Section 21 of the Monicals Pizza Franchise Agreement also covers the relationship between the franchisor and franchisee, clarifying that the agreement establishes a contractual relationship and does not create an agency, legal representation, joint venture, partnership, or employment relationship. The franchisee is responsible for presenting themselves to the public solely as a franchisee operating under a franchise from Monicals Pizza.
Additionally, Section 21 specifies that the agreement does not establish a fiduciary relationship between the parties, and unless specifically provided, Monicals Pizza is free to act in its self-interest without obligation to consider the impact on the franchisee or adhere to any standard of care limiting its rights, except as provided by statute or regulation. This section sets the stage for understanding the indemnification clause by defining the overall business relationship and responsibilities.