What costs are covered under the indemnification clause for a B Bops franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Relocation fee | $2,000 | Upon approval of a new location by the Company. | The relocation fee must be paid only if the Franchise must be moved to a new location during the term of the Franchise Agreement as a result of the termination of a lease, the destruction of the premises by fire or other casualty or the commencement of eminent domain |
|---|---|---|---|
| Indemnification | Will vary. | As incurred. | proceedings. |
| You must reimburse the | |||
| Company (or its | |||
| affiliates) if the | |||
| Company (or its | |||
| affiliates) are sued or | |||
| held liable for any claim | |||
| resulting from operation | |||
| of your Franchise or, if | |||
| applicable, the exercise | |||
| of your development | |||
| rights. |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the indemnification clause requires a franchisee to reimburse B Bops (or its affiliates) if they are sued or held liable for any claim resulting from the operation of the franchisee's B Bops restaurant or the exercise of development rights, if applicable. The specific amount will vary and is incurred as it happens.
This means that if a customer or employee sues B Bops due to something that occurred at your franchise location, such as a slip-and-fall or food poisoning incident, you may be responsible for covering B Bops's legal costs and any resulting settlements or judgments. Similarly, if you are a multi-unit developer and your actions related to developing new locations lead to a claim against B Bops, you could be required to cover those costs as well.
Indemnification clauses are standard in franchise agreements. It is important to have appropriate insurance coverage to protect against these types of claims. Franchisees should consult with a legal and insurance professional to fully understand the scope of their indemnification obligations and ensure they have adequate protection.