What specific costs are included in the definition of "Claims" for 360 Painting's indemnification provision?

According to 360 Painting's 2025 Franchise Disclosure Document, the term "Claims" within the indemnification provision encompasses a broad range of financial obligations and expenses. Specifically, it includes all obligations, damages (whether actual or consequential), and costs that are reasonably incurred when defending against any claim made against the Indemnified Parties.

These costs extend to various professional fees and expenses, such as those for accountants, arbitrators, attorneys, and expert witnesses. It also covers the costs associated with investigations, proving facts, court costs, and other expenses related to litigation, arbitration, or alternative dispute resolution methods. Furthermore, the definition of "Claims" incorporates travel and living expenses incurred during the defense of a claim.

This broad definition means that if a 360 Painting franchisee's actions lead to a claim against the franchisor, the franchisee could be responsible for covering a wide array of expenses beyond just the immediate damages. This could include significant legal and professional fees, making it crucial for franchisees to operate their businesses responsibly and in compliance with all applicable laws and the franchise agreement to minimize the risk of triggering the indemnification clause.