Is a Southern Steer franchisee liable for damages resulting from environmental contamination caused by their actions or omissions?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will indemnify and hold harmless the Indemnified Parties against, and will reimburse the Indemnified Parties for, all Damages that the Indemnified Parties incur in the defense of or as a result of any Claim brought against the Indemnified Parties arising from, in connection with, arising out of, relating to, or as a result of the Franchisee's negligence, the Franchisee's wrongdoing, the Franchisee's breach of this Agreement or the operation of the Franchisee's Southern Steer Business.
The Franchisee will indemnify the 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:
- i. any personal injury, property damage, commercial loss or environmental contamination resulting from any act or omission of the Franchisee, Designated Managers, Owners or its Executive Management, employees, agents or representatives;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are liable for damages resulting from environmental contamination caused by their actions or omissions. The franchisee must indemnify and hold harmless the indemnified parties, and will reimburse them for all damages incurred in the defense of or as a result of any claim brought against them. This includes claims arising from the franchisee's negligence, wrongdoing, or breach of the agreement, or from the operation of the Southern Steer business.
The franchisee's indemnification of the indemnified parties extends, without limitation, to all damages arising from any and all claims. This includes any personal injury, property damage, commercial loss, or environmental contamination resulting from any act or omission of the franchisee, designated managers, owners, or its executive management, employees, agents, or representatives. This means that if the franchisee's actions (or failure to act) leads to environmental contamination, they are financially responsible for the resulting damages.
This requirement to indemnify the franchisor for environmental contamination is a significant responsibility for Southern Steer franchisees. Environmental issues can be costly to remediate, and the franchisee would be responsible for covering these costs. Prospective franchisees should carefully consider this potential liability and ensure they have adequate insurance coverage and operational procedures in place to minimize the risk of environmental contamination. They should also seek legal counsel to fully understand the scope of their indemnification obligations under the franchise agreement.