According to the 2024 Red Wagon Club Franchise Disclosure Document, details regarding franchisee indemnification can be found in Section 12.D. The document states that franchisees are required to indemnify, defend, and hold harmless Red Wagon Club, its affiliates, and their respective stakeholders. This includes shareholders, directors, officers, employees, agents, successors, and assignees, collectively referred to as the "Indemnified Parties." This obligation extends to all claims, obligations, and damages that directly or indirectly arise from the franchisee's Red Wagon Club Business operation, the Affiliate Law Firm Business, the franchisee's participation in training programs, the business conducted under the Franchise Agreement, or any breach of the agreement by the franchisee.

The indemnification clause covers a broad range of potential liabilities and protects Red Wagon Club from financial losses and legal actions resulting from the franchisee's actions or inactions. It is important to note that this indemnification extends to claims caused by the Indemnified Party's gross negligence or willful misconduct, but only to the extent of the gross negligence or willful misconduct.

This type of clause is standard in franchise agreements, as it aims to allocate risk and protect the franchisor from liabilities arising from the franchisee's operation of the business. Prospective Red Wagon Club franchisees should carefully review this section of the Franchise Agreement with legal counsel to fully understand the scope of their indemnification obligations and potential financial exposure.