What costs are included in the indemnification provided by the Bambu franchisee to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall indemnify, defend and hold harmless Bambu, its subsidiaries, parents and affiliates, and their respective shareholders, directors, officers, managers, members, employees, agents, successors and assignees (the "Indemnified Parties"), against, and to reimburse them for all claims, obligations and damages described in this Section 20.3, any and all third party obligations described in Section 20.2 and any and all claims and liabilities directly or indirectly arising out of the operation of the Bambū shoppe or arising out of the use of the Marks and Bambū system in any manner not in accordance with this Agreement, including without limitation any claims alleging violations of any laws including labor and employment laws.
For purposes of this indemnification, claims shall mean and include all obligations, actual and consequential damages and costs reasonably incurred in the defense of any claim against the Indemnified Parties, including, without limitation, reasonable accountants', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel, lodging, and meal expenses.
This indemnification includes any claims arising from the acts or omissions of Franchisee's
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchisee's indemnification of Bambu covers a range of potential costs and liabilities. Specifically, the franchisee must indemnify, defend, and hold harmless Bambu and its related parties against all claims, obligations, and damages arising from the operation of the Bambu shop. This includes any third-party obligations outlined in Section 20.2 of the agreement, as well as claims and liabilities resulting from the use of the Bambu system or marks in a manner not compliant with the franchise agreement. This also extends to claims alleging violations of any laws, including labor and employment laws.
For the purposes of this indemnification, the term 'claims' is broadly defined to include all obligations, actual and consequential damages, and costs reasonably incurred in defending against any claim. These costs specifically include, but are not limited to, reasonable fees for accountants, attorneys, and expert witnesses. Furthermore, the indemnification covers costs associated with the investigation and proof of facts, court costs, other litigation expenses, and expenses for travel, lodging, and meals.
This indemnification extends to claims arising from the actions or omissions of the franchisee's employees and agents. Bambu retains the right to defend any claim made against it. It is important to note that this indemnification remains in effect even after the expiration or termination of the franchise agreement. This means that even after the franchise relationship ends, the franchisee may still be liable for costs and damages related to their past operation of the Bambu shop.