Which sections of the 7 Brew Franchise Agreement and Manufacturing Agreement describe the franchisee's indemnification obligations?

According to 7 Brew's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including indemnification. Specifically, the sections detailing the franchisee's indemnification responsibilities are found in Sections 10 and 20.E of the Franchise Agreement and Section 8 of the Manufacturing Agreement. Indemnification refers to the franchisee's obligation to protect 7 Brew from losses, damages, or liabilities resulting from the franchisee's operation of the business.

For a prospective 7 Brew franchisee, this means they will need to understand the full scope of these sections to be aware of situations where they might be required to cover 7 Brew's losses. These situations typically arise from the franchisee's actions or inactions, such as operational errors, breaches of contract, or failure to comply with applicable laws and regulations. The franchisee should carefully review these sections with legal counsel to fully grasp their potential liabilities.

Understanding indemnification obligations is crucial, as they can have significant financial implications for the franchisee. It is common in franchising for the franchisee to bear responsibility for their business's liabilities, but the specific terms can vary widely. Therefore, a prospective 7 Brew franchisee should pay close attention to the conditions under which indemnification is required and ensure they have adequate insurance coverage to mitigate potential risks. They should also seek clarification from 7 Brew regarding any ambiguous language or potentially onerous obligations within these sections.