The franchise agreement provides for the obligation for the franchisee to maintain a certain insurance coverage throughout the duration of the deductible. You can also expect indemnification clauses. For example, the franchisee will likely have an obligation to “release, defend and hold harmless” the franchisee from all claims, costs, damages and expenses arising out of the franchisee`s activities. The agreement should define the obligation for the franchisee to assist franchisees with marketing and advertising. Unfortunately, some agreements are more demanding for franchisees than for franchisors. In some franchises, the franchisee has to spend a certain percentage on local advertising, but the franchisee is remarkably free of harsh and fast obligations! A franchise agreement protects both parties.