In the B Bops franchise agreement, what is the franchisee's responsibility regarding loss or damage related to the franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
N OF PROCEEDINGS. Franchisee alone shall be responsible for all loss or damage in any manner arising out of or relating to the ownership and operation of the Franchise. Accordingly, Franchisee agrees to indemnify and hold Company and its affiliates and their respective (directors, officers, employees and agents) harmless from and against all claims, losses, damages, liabilities, fines, suits, proceedings, expenses (including, without limitation, costs and attorneys' fees) or actions of any kind or nature arising out of or in any way connected with the ownership or operation of the Franchise or the conduct or business of Franchisee or its officers, employees or agents. Franchisee further agrees that if Company or any other indemnitee is made a party to a lawsuit or other legal proceeding in connection with the ownership or operation of the Franchise or the conduct or business of Franchisee or its officers, employees or agents, then, at the option of Company or such other indemnitee, Company or such other indemnitee may tender the defense and/or prosecution of the case to Franchisee who shall be responsible for diligently pursuing the case or action at Franchisee's expense, or Company or such other indemnitee may hire counsel directly to protect its respective interests and bill Franchisee for all costs and attorneys' fees incurred in connection therewith, in which case Franchisee shall reimburse promptly the billing party for all such costs and expenses incurred. The indemnification obligation imposed by this Section 15 shall survive the termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchisee is solely responsible for any loss or damage arising from the ownership and operation of the franchise. This means that the franchisee bears the full financial burden for any incidents, claims, or liabilities connected to the B Bops restaurant.
To protect themselves, B Bops franchisees must indemnify and hold B Bops and its affiliates harmless from all claims, losses, damages, liabilities, fines, suits, proceedings, and expenses, including attorney's fees, that arise from the operation of the franchise. This indemnification extends to the conduct or business of the franchisee, its officers, employees, or agents. Essentially, the franchisee is the first line of defense against any legal or financial issues related to the restaurant.
Furthermore, the franchisee is obligated to maintain insurance coverage as specified by B Bops in the Operations Manual. These policies must name B Bops and B-Bop's, Inc. as additional insureds and provide at least 30 days' notice to B Bops before any cancellation, termination, nonrenewal, or change. The franchisee must also report all losses to B Bops within ten days, regardless of whether the loss is covered by insurance. This ensures B Bops is aware of any potential issues and can advise the franchisee accordingly. The franchisee's insurance obligations do not relieve them of their indemnification responsibilities.