Does the Zoomin Groomin franchisee's obligation to indemnify extend beyond the term of the franchise agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provision in the franchise agreement or related agreements requiring the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor or other parties is hereby modified such that the franchisee has no obligation to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that they are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, the franchisee's obligation to indemnify the franchisor is limited. Specifically, any provision requiring the franchisee to indemnify, reimburse, defend, or hold harmless Zoomin Groomin is modified. This modification ensures that the franchisee is not obligated to cover losses or liabilities caused by Zoomin Groomin's own negligence, willful misconduct, strict liability, or fraud. This protection applies regardless of whether the franchise agreement is active or has expired.
This modification is significant for prospective Zoomin Groomin franchisees because it limits their financial exposure in situations where Zoomin Groomin's actions contribute to the losses or liabilities. Without this modification, franchisees could potentially be responsible for covering costs arising from the franchisor's mistakes or intentional wrongdoing.
This type of limitation on indemnification is not universally standard in franchising, and franchisees should carefully review the indemnification clauses in any franchise agreement to understand the scope of their responsibilities and protections. It is advisable for prospective Zoomin Groomin franchisees to consult with legal counsel to fully understand the implications of this clause and how it affects their rights and obligations under the franchise agreement.