Does the indemnification agreement for B Bops cover litigation expenses?

According to B Bops's 2025 Franchise Disclosure Document, the indemnification agreement does cover litigation expenses. Specifically, the agreement requires the Developer (franchisee) to indemnify and hold B Bops (the Company) and its affiliates harmless from various liabilities and expenses.

This indemnification extends to all liabilities, damages, penalties, assessments, or expenses that B Bops may incur due to any claim or demand arising out of the Developer's performance of the Development Agreement. This includes, but is not limited to, the exercise of development rights, acquisition of unit sites, construction of units, and the ownership, maintenance, or operation of any unit. Crucially, the expenses covered explicitly include litigation expenses and reasonable attorneys' fees.

In practical terms, this means that if a third party brings a claim against B Bops related to the franchisee's actions or operations, the franchisee is responsible for covering B Bops's costs in defending against that claim, including legal fees and any resulting judgments or settlements. This places a significant financial burden on the franchisee, as they could be responsible for substantial legal costs even if they are not directly at fault. Franchisees should carefully consider this indemnification clause and potentially seek legal counsel to fully understand their obligations and risks.