Under what circumstances do the Pump It Up franchisee's indemnification obligations not extend to claims?

According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee's obligation to indemnify the franchisor does not extend to claims caused by the franchisor's actions or omissions that amount to strict liability or fraud, specifically for franchisees in Washington state. This means that if a claim arises against the franchisee due to Pump It Up's strict liability (liability without fault) or fraudulent behavior, the franchisee is not required to cover the franchisor's losses, legal fees, or damages. This protection is specifically noted as an addendum for franchisees in Washington.

This modification is significant because it shifts some of the risk back to Pump It Up in cases where their own actions lead to claims. Typically, franchise agreements heavily favor the franchisor, requiring franchisees to indemnify them even for issues stemming from the franchisor's negligence. This clause provides a degree of protection for Pump It Up franchisees in Washington against bearing the full financial burden of the franchisor's misconduct or inherent risks associated with the business model.

Prospective Pump It Up franchisees outside of Washington should note that this specific protection may not apply to them. It would be prudent for all potential franchisees to consult with a franchise attorney to understand the full scope of the indemnification clause in their franchise agreement and to negotiate for similar protections, regardless of their location. Understanding the specific liabilities and protections is crucial before entering into a franchise agreement.