What is the Petro Stopping Center franchisee required to do regarding legal counsel in the event of a claim?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to defend, indemnify and hold harmless the Franchisor Indemnified Parties from all Claims based upon or arising out of: (a) your breach of this Agreement, including the representations and warranties set forth herein; (b) your ownership, development, or operation of the Petro Center; (c) your violation or alleged violation of, or noncompliance or alleged non-compliance with, any applicable laws, rules, or regulations (including any applicable employment or workplace-related laws, rules, or regulations); (d) the acts or omissions of you or any of your Owners or employees; or (e) any injuries, including death to persons or damages to or destruction of property, sustained or alleged to have been sustained in connection with or to have arisen out of or incidental to the Petro Center, your business and/or the performance of this Agreement by you, your Owners, agents, employees, and/or its subcontractors, their agents and employees, or anyone for whose acts they may be liable. Our right to indemnification hereunder shall exist regardless of whether or not: (x) a Claim is caused in whole or in part by the negligence of us, our Affiliates, representatives, or any of our or their employees, agents, invitees, or licensees; or (y) joint or several liability may be imposed upon us by applicable law. The provisions of this Section 20.7 shall survive the expiration or termination of this Agreement.
Source: Item 17 — RENEWAL TERMS. (FDD pages 208–228)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, franchisees are responsible for defending, indemnifying, and holding harmless the Franchisor Indemnified Parties from all claims arising from several circumstances. These include breaches of the agreement, the operation of the Petro Center, violations of laws or regulations, the franchisee's or their employees' actions, and any injuries or damages related to the Petro Center's operation. This obligation exists regardless of whether the claim is due to negligence by Petro Stopping Center or its affiliates.
Specifically, the franchisee must cover all costs associated with defending against claims, including legal counsel. This means that if a claim is made against Petro Stopping Center due to the franchisee's actions or the operation of their Petro Center, the franchisee is responsible for hiring and paying for their own legal representation to defend Petro Stopping Center against the claim.
This requirement is a significant responsibility for Petro Stopping Center franchisees, as legal costs can be substantial. It is essential for prospective franchisees to understand the scope of this indemnification obligation and to ensure they have adequate insurance coverage and resources to meet these potential expenses. Franchisees should consult with a legal professional to fully understand their obligations and potential liabilities under the franchise agreement.