51.2.4 Franchisee’s indemnity

51.2.4 Franchisee’s indemnity

It is common in franchise agreements for the franchisee to be required to, for example:

‘indemnify the Franchisor from and against any and all loss, damage or liability, whether criminal or civil, suffered [and legal fees and costs incurred] by the Franchisor due to any neglect or default of the Franchisee or its agents, employees, licensees or customers in connection with the business ...’

Such a term should be checked with the franchisee’s insurers. If the franchisee is participating in the franchisor’s block policy, it should be ascertained whether cover is provided against obligations under