Is the Pearce Bespoke Franchisee responsible for injury or death of any persons resulting from their business operations?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Franchisee are independent contractors. Neither Franchisor nor Franchisee will make any agreements, representations, or warranties in the name of or for the other or that their relationship is other than franchisor and franchisee. Neither Franchisor nor Franchisee will be obligated by or have any liability under any agreements, representations or warranties made by the other. 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 losses, damages, claims of property damage, injury, or death resulting from the operation of their business. The franchisee is considered an independent contractor and is responsible for their own actions, as well as the actions of their agents, employees, or contractors.
Pearce Bespoke franchisees must indemnify the franchisor against any obligations and damages arising from the operation of the franchisee's business. This includes all costs the franchisor reasonably incurs in defending against any claim brought against it, including attorney's fees. This means that if a claim is brought against Pearce Bespoke due to the franchisee's actions, the franchisee is responsible for covering the franchisor's costs.
This allocation of responsibility is typical in franchising, where franchisees operate independently and are best positioned to manage the risks associated with their specific location and operations. Prospective Pearce Bespoke franchisees should carefully consider the implications of this indemnification clause and ensure they have adequate insurance coverage to protect themselves against potential liabilities.