To what extent do the indemnification obligations of a Petro Stopping Center franchisee extend regarding liabilities caused by the franchisor's gross negligence, willful misconduct, strict liability, or fraud?

According to the 2025 Petro Stopping Center Franchise Disclosure Document, a specific addendum modifies the standard franchise agreement regarding franchisee indemnification obligations. For franchisees in Washington state, Section 20.6 of the Franchise Agreement is amended to clarify the extent of their indemnification responsibilities.

Specifically, the addendum states that a Petro Stopping Center franchisee's duty to indemnify the franchisor does not extend to liabilities arising from the franchisor's own gross negligence, willful misconduct, strict liability, or fraud. This means that while franchisees typically agree to protect the franchisor from certain claims and liabilities, this protection does not apply if the franchisor itself is responsible for causing the issue through serious misconduct or negligence.

This modification provides an added layer of protection for Petro Stopping Center franchisees in Washington, ensuring they are not held responsible for the franchisor's own wrongful actions. It is important for prospective franchisees to carefully review any state-specific addenda to understand how the standard franchise agreement may be modified in their specific location.