Does the indemnification obligation in the B Bops franchise agreement survive the termination of the agreement?

According to B Bops's 2025 Franchise Disclosure Document, the indemnification obligation outlined in Section 15 of the franchise agreement does indeed survive the termination or expiration of the agreement. This means that even after the franchise agreement ends, either through termination or expiration, the franchisee's responsibility to protect B Bops from losses, damages, liabilities, and expenses related to the operation of the franchise continues.

This survival clause has significant implications for a prospective B Bops franchisee. It means that if any claims, losses, or damages arise from the franchisee's operation of the B Bops restaurant during the term of the agreement, the franchisee could still be held responsible for indemnifying B Bops even after the franchise has closed. This could include legal fees, settlement costs, and other expenses related to such claims.

For example, if a customer were injured at the B Bops location due to the franchisee's negligence during the franchise term, and a lawsuit is filed after the franchise agreement has ended, the franchisee would still be obligated to indemnify B Bops against any losses resulting from that lawsuit. Therefore, it is crucial for a prospective franchisee to understand the scope of this indemnification obligation and to maintain adequate insurance coverage to protect against potential claims, even after the franchise agreement has ended. Franchisees should carefully consider this long-term liability when evaluating the B Bops franchise opportunity.