Under what circumstances will the Pearce Bespoke Franchisor indemnify the Franchisee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchisor will indemnify the franchisee under specific circumstances related to the franchisor's actions. Pearce Bespoke will indemnify and reimburse the franchisee for obligations or liability for damages attributable to agreements, representations, or warranties made by Pearce Bespoke. This also extends to damages caused by Pearce Bespoke's negligence or willful actions.
The indemnification also covers costs the franchisee reasonably incurs in defending any claim or action in which the franchisee is named as a party. However, Pearce Bespoke retains the right to participate in and control any litigation or proceeding if it deems necessary, especially if it might result in liability or expense to the franchisee.
This indemnification agreement remains in effect even after the expiration, termination, or transfer of the Franchise Agreement, providing ongoing protection to the franchisee under the specified conditions. This clause ensures that franchisees are not held liable for issues directly resulting from the franchisor's actions or misrepresentations, offering a degree of financial and legal security.