Does the Southern Steer Multi-Unit Developer's indemnification obligation extend to personal injury claims resulting from their operations?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Multi-Unit Developer's indemnification obligations do extend to personal injury claims. Southern Steer's Franchisor Indemnified Parties will be indemnified and held harmless against damages resulting from claims arising out of the Multi-Unit Developer's negligence, wrongdoing, breach of agreement, or the operation of their Southern Steer Businesses. This means the Multi-Unit Developer is responsible for protecting the Franchisor Indemnified Parties from losses.
The Multi-Unit Developer will indemnify the Franchisor Indemnified Parties for all damages arising from claims, including any personal injury resulting from any act or omission of the Multi-Unit Developer or their Executive Management, employees, agents or representatives. This encompasses a broad range of potential liabilities, emphasizing the importance of comprehensive insurance coverage and adherence to safety and operational standards.
This requirement means that if a customer or employee is injured due to the Multi-Unit Developer's actions or failures, the Multi-Unit Developer is responsible for covering the Franchisor Indemnified Parties' losses, including legal fees, settlements, and judgments. This indemnification extends to damages resulting from the Multi-Unit Developer's failure to comply with federal or state laws or regulations. Therefore, it is crucial for a prospective Southern Steer Multi-Unit Developer to understand the full scope of this indemnification and ensure they have adequate protection through insurance and sound business practices.