Contractual relationships create situations involving the transfer of risk among parties, and franchise relationships are no exception. Typically, the parties to a franchise agreement will rely on two different methods to apportion risk and provide themselves with protection: insurance and indemnification.
Insurance, Indemnification and the Franchise Relationship: How to Make 'Belt and Suspenders' Work for Your Business
Unless one is aware of the potential pitfalls, even so-called "iron-clad" indemnification clauses or insurance provisions in a franchise agreement can be all for naught. This article discusses the interplay between insurance, indemnification, and the default common-law rules, so that franchisors and franchisees can avoid those dangerous pitfalls.
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