Is the Pearce Bespoke Franchisee responsible for damage to property resulting from their business operations?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee alone will be responsible for all loss or damage arising out of or relating to the operation of Franchisee's business or arising out of the acts or omissions of Franchisee or any of its agents, employees, or contractors in connection with the preparation and sale of products by Franchisee, and for all claims for damage to property or for injury or death of any persons directly or indirectly resulting therefrom. Franchisee acknowledges that the customer list of all Pearce Bespoke or commercial customers shall be the sole and exclusive property of Franchisor, and that Franchisee shall have no ownership rights or interest in the customer list. Franchisee will indemnify Franchisor against and will reimburse Franchisor for all obligations and damages arising out of the operation of Franchisee's business, including all costs Franchisor reasonably incurs in the defense of any such claim brought against it or in any action in which it is named as a party (including reasonable attorneys' fees), including without limitation any claims brought against it related to Franchisee's violations of Privacy Laws. Franchisor will have the right to defend any such claim against it. Franchisor will indemnify Franchisee against and reimburse Franchisee for any obligations or liability for damages attributable to agreements, representations or warranties of Franchisor, or custom by Franchisor's negligence or willful action, and for costs Franchisee reasonably incurs in the defense of any such claim brought against it or in any action in which it is named as a party, provided that Franchisor will have the right to participate in and, to the extent Franchisor deems necessary, to control any litigation or proceeding which might result in liability of or expense to Franchisee subject to such indemnification. The indemnities and assumptions of liabilities and obligations stated in this Agreement will continue in full force and effect following the expiration, termination, or a transfer of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the franchisee is responsible for damage to property resulting from their business operations. The franchisee is solely responsible for any loss or damage that occurs during the operation of their Pearce Bespoke franchise. This includes damage to property or injury/death to any person resulting from the franchisee's actions, omissions, or those of their agents, employees, or contractors.
This means a Pearce Bespoke franchisee bears the financial risk for any incidents related to their business activities. For example, if a customer's property is damaged during a fitting or consultation, the franchisee is liable for the costs. It is important for prospective franchisees to understand this responsibility and ensure they have adequate insurance coverage to protect against potential claims.
Furthermore, the franchisee is required to indemnify Pearce Bespoke against any claims or damages arising from the operation of the franchisee's business. This includes covering Pearce Bespoke's legal costs, including attorney's fees, if the franchisor is named in a claim related to the franchisee's business. This indemnification clause reinforces the franchisee's responsibility for all aspects of their business operations and any resulting liabilities.