Where in the Mr. Sandless franchise agreement can I find information about indemnification?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
18.4 Covenants of Employees, Agents, and Third Persons
You shall require and obtain execution of covenants similar to those set forth in this Section 19.4 (including covenants applicable upon the termination of a person's employment with you) from all employees, contractors or third persons who will have access to Mr. Sandless proprietary and Confidential Information, and shall provide to us to an executed versions thereof. Such covenants shall be substantially in the form set forth in Attachment 4 as revised and updated from time to time and contained in the Manual. You shall indemnify and hold us harmless from any and all liability, loss, attorneys' fees, or damage we may suffer as a result of your failure to obtain executed restricted covenants by employees, agents and third persons as required by this Section.
19. INDEPENDENT LICENSEE; INDEMNIFICATION
19.1 Independent Licensee
You are and shall be an independent licensee under this Agreement, and no partnership shall exist between you and the us. This Agreement does not constitute you as an agent, legal representative, or employee of ours for any purpose whatsoever, and you are not granted any right or authority to assume or create any obligation for or on behalf of, or in the name of, or in any way to bind Franchisors. You agrees not to incur or contract any debt or obligation on behalf of us or commit any act, make any representation, or advertise in any manner which may adversely affect any right of Franchisor or be detrimental to Franchisor or other franchisees of Franchisor. We does not assume any liability, and will not be considered liable, for any agreements, representations, or warranties made by you which are not expressly authorized under this Agreement. We will not be obligated for any damages to any person or property which directly or indirectly arise from or relate to your operations of the Franchised Business. Pursuant to the above, you agree to indemnify Franchisor and hold Franchisor harmless from any and all liability, loss, attorneys' fees, or damage Franchisor may suffer as a result of claims, demands, taxes, costs, or judgments against Franchisor arising out of any allegation of an agent, partner, or employment relationship.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, the indemnification obligations of the franchisee are detailed in Section 19 of the franchise agreement, titled "INDEPENDENT LICENSEE; INDEMNIFICATION." Specifically, Section 19.1 addresses the franchisee's responsibility to indemnify Mr. Sandless against liabilities, losses, attorney's fees, or damages resulting from claims, demands, taxes, costs, or judgments arising from allegations of an agency, partnership, or employment relationship.
Additionally, Section 18.4, "Covenants of Employees, Agents, and Third Persons," stipulates that franchisees must secure covenants from their employees, contractors, and other individuals with access to Mr. Sandless's confidential information. These covenants should mirror those outlined in Attachment 4 of the franchise agreement. Failure to obtain these executed covenants can result in the franchisee being required to indemnify Mr. Sandless from any liabilities, losses, attorney's fees, or damages incurred due to this failure.
Furthermore, the Guaranty Agreement specifies that the guarantor is subject to and bound by the indemnification provisions contained in Section 19.4 of the Franchise Agreement. This highlights the importance of understanding the full scope of indemnification responsibilities, not only for the franchisee but also for any guarantor involved in the franchise agreement.