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.

26 minute read June 30, 2009 at 11:25 AM
By
Andrew S. Wein
Insurance, Indemnification and the Franchise Relationship: How to Make 'Belt and Suspenders' Work for Your Business

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.

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