Is the Company obligated to indemnify a B Bops franchisee against claims of infringement or unfair competition?

According to B Bops's 2025 Franchise Disclosure Document, B Bops is obligated to indemnify its franchisees against claims of infringement or unfair competition related to the use of its licensed marks. This obligation is conditional, requiring the franchisee to have complied with all material terms and conditions of the Franchise Agreement when using the licensed marks. This means that if a franchisee adheres to the guidelines and stipulations outlined in the agreement regarding the use of B Bops's trademarks, the company will protect them from legal challenges related to trademark infringement or unfair competition.

This protection extends to covering the costs and control of any legal proceedings. B Bops retains exclusive control over any administrative or litigation processes initiated due to issues with the licensed marks. This implies that while the franchisee is protected, B Bops makes the decisions on how to handle legal matters, ensuring a unified and strategic approach to defending its brand.

However, this protection ceases if the Franchise Agreement is terminated or expires without renewal. In such cases, B Bops has the right to prohibit the franchisee from any further use or display of the licensed marks. This underscores the importance of adhering to the Franchise Agreement and the potential consequences of non-compliance or the end of the franchise relationship. Franchisees must be vigilant in protecting the licensed marks and following the guidelines set forth by B Bops to maintain this indemnification.