Can a Pearce Bespoke franchisee be relieved of indemnification obligations by maintaining the required insurance?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, maintaining the required insurance does not relieve a franchisee of their indemnification obligations. The franchisee is required to obtain and maintain public liability insurance with products/completed operations coverage and premises liability of no less than $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate, along with bailee insurance protecting consignment goods and other insurance types and amounts as Pearce Bespoke may reasonably require.

The insurance policies must protect both the franchisee and Pearce Bespoke and require the insurer to defend both parties in any action. Pearce Bespoke must be named as an additional insured, and the policy cannot be canceled, amended, or modified without thirty days' prior written notice to Pearce Bespoke. The franchisee must provide proof of insurance to Pearce Bespoke annually or upon request.

Despite these insurance requirements, the FDD explicitly states that maintaining insurance does not relieve the franchisee of their indemnification obligations as outlined in Section 11 of the franchise agreement. This means that even with the required insurance coverage, a Pearce Bespoke franchisee remains responsible for covering Pearce Bespoke's losses, damages, and costs arising from the franchisee's business operations.