Is a Southern Steer franchisee required to indemnify the Indemnified Parties for damages resulting from the Indemnified Parties' gross negligence?

According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee is generally not obligated to indemnify the Indemnified Parties for damages resulting from the Indemnified Parties' gross negligence or intentional misconduct.

Specifically, the FDD states that the franchisee will not be required to cover damages that are attributable to, arising out of, from, in connection with, or as a result of any gross negligence or intentional misconduct by the Indemnified Parties. This clause protects the franchisee from liability for the franchisor's own serious errors or intentional wrongdoing.

This protection is a fairly standard provision in franchise agreements. It ensures that franchisees are not held responsible for situations outside of their control, such as the franchisor's mismanagement or intentional harmful acts. However, franchisees are still responsible for their own negligence, wrongdoing, or breach of the franchise agreement, as well as the operation of their Southern Steer business.