Does the Bambu franchise agreement require the franchisee to indemnify Bambu for claims arising from the acts or omissions of the franchisee's employees?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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
employees and agents. Bambu shall have the right to defend any such claim against it. This indemnity shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.
21. RESTRICTIVE COVENANTS
- 21.1 Non-Competition During Term.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchise agreement does require the franchisee to indemnify Bambu for claims arising from the acts or omissions of the franchisee's employees and agents. This means that the franchisee is responsible for protecting Bambu from any legal claims or liabilities that result from the actions of the franchisee's employees. This protection extends to covering Bambu's legal costs, damages, and other expenses related to such claims.
This indemnification clause places a significant responsibility on the Bambu franchisee. It means that if an employee's actions lead to a lawsuit or financial loss for Bambu, the franchisee will have to cover those costs. This could include situations such as an employee causing an accident, violating a law, or engaging in misconduct that harms a customer or another party. The franchisee's obligation to indemnify Bambu continues even after the franchise agreement expires or is terminated.
It is important for a prospective Bambu franchisee to understand the scope of this indemnification requirement and to take steps to mitigate the risks associated with employee actions. This could include implementing thorough training programs, maintaining adequate insurance coverage, and establishing clear policies and procedures for employee conduct. Franchisees should consult with legal and insurance professionals to fully understand their obligations and to ensure they have adequate protection in place.
However, a rider to the franchise agreement for New York franchisees modifies this. Franchisees in New York will not be required to indemnify Bambu for any liabilities which arose as a result of Bambu's breach of the agreement or other civil wrongs committed by Bambu.