Are there any circumstances under which a Southern Steer franchisee is NOT required to indemnify the Indemnified Parties?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor and its Affiliates and their respective employees, Executive Management, shareholders, members, Owners, directors, officers, attorneys, accountants and agents (individually and collectively, the "Indemnified Parties") will not be obligated to any person or Entity for any Damages arising out of, from, in connection with, 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 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;
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 the 2025 Southern Steer Franchise Disclosure Document, the franchisor and its affiliates are not obligated to any person or entity for damages arising out of the franchisee's negligence, wrongdoing, breach of the agreement, or the operation of the Southern Steer business. This means that Southern Steer franchisees are generally required to indemnify the Indemnified Parties under most circumstances related to their business operations.
The franchisee must indemnify and hold harmless the Indemnified Parties against all damages incurred in the defense of any claim brought against them, arising from the franchisee's negligence, wrongdoing, breach of the agreement, or the operation of the Southern Steer business. This indemnification extends to various claims, including personal injury, property damage, failure to comply with laws, failure to pay obligations, breach of the agreement, misfeasance, torts, determinations of employer status, employee claims, breaches of security, and violations of data privacy laws.
This broad indemnification clause places a significant responsibility on the franchisee to protect Southern Steer from liabilities arising from their business operations. Prospective franchisees should carefully consider the scope of this indemnification and ensure they have adequate insurance coverage and risk management practices in place to mitigate potential liabilities. It is also important to consult with a legal professional to fully understand the implications of this clause.