What does the B Bops Developer agree to indemnify the Company against?

According to B Bops's 2025 Franchise Disclosure Document, the Developer agrees to indemnify and hold harmless B Bops Franchising Corp., its affiliates, and their respective directors, officers, shareholders, agents, and employees. This means the Developer will protect them from and cover the costs of any liabilities, damages, penalties, assessments, or expenses. These expenses include litigation costs and reasonable attorneys' fees.

This indemnification extends to any claim, demand, cost, or judgment of any kind, regardless of who makes the claim, that arises out of or is connected with the Developer's performance of the Multiple-Unit Development Agreement. This includes the exercise of development rights, the acquisition of any Unit site, the construction of any Unit, and the ownership, maintenance, or operation of any Unit.

In practical terms, this means that if a third party sues B Bops due to something the Developer did (or failed to do) while developing or operating their B Bops locations, the Developer is responsible for covering B Bops's legal costs and any resulting judgments or settlements. This is a standard clause in franchise agreements, designed to protect the franchisor from liabilities arising from the franchisee's operations. Prospective B Bops developers should carefully consider this obligation and ensure they have adequate insurance and legal counsel to manage these potential risks.