Who are considered the 'Indemnified Parties' that Southern Steer franchisees must indemnify?

According to Southern Steer's 2025 Franchise Disclosure Document, the Indemnified Parties include the Franchisor and its Affiliates, along with their respective employees, Executive Management, shareholders, members, Owners, directors, officers, attorneys, accountants, and agents. Franchisees are obligated to indemnify and hold harmless these Indemnified Parties against any Damages they incur while defending against or as a result of any Claim brought against them. This indemnification extends to claims arising from the franchisee's negligence, wrongdoing, breach of the Franchise Agreement, or the operation of their Southern Steer Business.

This means that as a Southern Steer franchisee, you are financially responsible for covering the legal costs and damages incurred by the Indemnified Parties if a claim is made against them due to your actions or the way you run your franchise. This responsibility is broad, covering various potential issues, including personal injury, property damage, failure to comply with laws, and breaches of the Franchise Agreement. The franchisee's obligation to indemnify the Indemnified Parties applies regardless of whether an Indemnified Party is required to take any action under any state or federal law.

Southern Steer franchisees must also secure insurance policies that name the Franchisor and its Indemnified Parties as additional insureds. These policies must protect against any liability that may arise from the franchisee's ownership, maintenance, or operation of the Southern Steer Business. Furthermore, franchisees must ensure that their suppliers and independent contractors also maintain insurance policies that protect the franchisee, the franchisor, and their respective Executive Management, agents, and employees from any loss, liability, claim, or expense resulting from the supplier's or contractor's negligence or wrongdoing.

This indemnification clause is a standard practice in franchising, designed to protect the franchisor from liabilities arising from the franchisee's operations. However, it places a significant financial burden on the franchisee, who must be diligent in operating their business and complying with all applicable laws and the Franchise Agreement to minimize the risk of claims. Prospective franchisees should carefully review the indemnification clause and understand the scope of their responsibilities before investing in a Southern Steer franchise.