Who are considered the 'Franchisor Indemnified Parties' that the Multi-Unit Developer must indemnify for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor and its Affiliates and their respective employees, Executive Management, Owners, directors, officers, attorneys, accountants and agents (individually and collectively, the "Franchisor Indemnified Parties") will not be obligated to any person or Entity for any Damages arising out of, from, in connection with, relating to, or as a result of the Multi-Unit Developer's and/or Controlled Entity's (if any) negligence, the Multi-Unit Developer's and/or Controlled Entity's (if any) wrongdoing, breach of this Agreement, or the operation of the and/or Controlled Entity's (if any) Southern Steer Businesses.
Therefore, the Multi-Unit Developer and Controlled Entity's (if any) will indemnify and hold harmless the Franchisor Indemnified Parties against, and will reimburse the Franchisor Indemnified Parties for, all Damages that the Franchisor Indemnified Parties incur in the defense of or as a result of any Claim brought against the Franchisor Indemnified Parties arising from, in connection with, arising out of, relating to, or as a result of the Multi-Unit Developer's and/or Controlled Entity's (if any) negligence, wrongdoing, breach of this Agreement or the Multi-Unit Developer's and/or Controlled Entity's (if any) operation of their Southern Steer Businesses.
The Multi-Unit Developer will indemnify the Franchisor Indemnified Parties, without limitation, for all Damages arising from, out of, in connection with, relating to, or as a result of any and all Claims, including, but not limited to:
(a) any personal injury, property damage, commercial loss or environmental contamination resulting from any act or omission of the Multi-Unit Developer and/or Controlled Entity (if any) or their Executive Management, employees, agents or representatives;
(b) any failure on the part of the Multi-Unit Developer and/or Controlled Entity (if any) to comply with any requirement of any federal or state laws or any rules or regulations of any Governmental Authority;
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Franchisor Indemnified Parties include the Franchisor and its Affiliates, along with their respective employees, Executive Management, Owners, directors, officers, attorneys, accountants, and agents. This means that the Multi-Unit Developer is obligated to protect these individuals and entities from damages, losses, or expenses they might incur due to the Multi-Unit Developer's actions or the operation of their Southern Steer businesses.
The Multi-Unit Developer is required to indemnify and hold harmless the Franchisor Indemnified Parties against any damages they incur while defending against claims arising from the Multi-Unit Developer's negligence, wrongdoing, breach of the Multi-Unit Development Agreement, or the operation of their Southern Steer Businesses. This indemnification extends to reimbursing the Franchisor Indemnified Parties for all damages they incur in defending against or as a result of any claim brought against them.
The indemnification extends to all damages arising from claims related to personal injury, property damage, commercial loss, or environmental contamination resulting from any act or omission of the Multi-Unit Developer, their Executive Management, employees, agents, or representatives. It also covers any failure by the Multi-Unit Developer to comply with federal or state laws, rules, or regulations of any Governmental Authority. This broad indemnification clause places a significant responsibility on the Multi-Unit Developer to ensure compliance and manage risks effectively to protect the Franchisor Indemnified Parties from potential liabilities.