Is a Southern Steer franchisee required to indemnify the Indemnified Parties for claims arising from a determination that the Franchisor is the employer of any of Franchisee's employees?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
ii. any failure on the part of the Franchisee to comply with any requirement of any federal or state laws or any rules or regulations of any Governmental Authority;
iii. any failure of the Franchisee to pay any of its obligations to any person or Entity;
iv. any failure of the Franchisee to comply with any requirement or condition of this Agreement, the Brand Manual, or any other agreement with the Franchisor and/or the Indemnified Parties;
v. any misfeasance or malfeasance by the Franchisee or its Executive Management, employees, agents or representatives;
vi. any tort committed by the Franchisee or its Executive Management, employees, agents or representatives;
vii. any determination by a court or agency that the Franchisor is the employer or a joint employer of any of Franchisee's employees;
viii. any claim, action, suit, or proceeding by the Franchisee's employees, including but not limited to workers' compensation, unemployment, and wage-and-hour claims;
ix.
Breaches of Security, regardless of whether an Indemnified Party is required to take any action under any state or federal law;
- x. violation of any data privacy laws;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchisee is required to indemnify the Indemnified Parties for damages arising from a determination by a court or agency that Southern Steer is the employer or a joint employer of any of the franchisee's employees. This means the franchisee will be responsible for covering the costs and expenses incurred by Southern Steer if such a determination is made.
This indemnification extends to all damages arising from claims, including but not limited to personal injury, property damage, commercial loss, or environmental contamination resulting from any act or omission of the franchisee, designated managers, owners, executive management, employees, agents, or representatives. It also includes any failure on the part of the franchisee to comply with federal or state laws, rules, or regulations, or any failure to pay obligations to any person or entity.
Furthermore, the franchisee must indemnify Southern Steer for damages resulting from any failure to comply with the Franchise Agreement, the Brand Manual, or any other agreement with Southern Steer. This also covers any misfeasance, malfeasance, or tort committed by the franchisee or its personnel, as well as any claim, action, suit, or proceeding by the franchisee's employees, including workers' compensation, unemployment, and wage-and-hour claims. Breaches of security and violations of data privacy laws are also included in the indemnification requirements.